Sui Network to Integrate sBTC, a Bitcoin-Backed Asset on the Stacks Network

Sui, the fast-growing Layer 1 network, is preparing for one of its most significant integrations of the year.

Sui, the rapidly expanding Layer 1 network, is preparing for one of its most significant integrations of the year - the addition of sBTC, a Bitcoin-backed asset on the Stacks network.

As the new year begins, Sui is gearing up for a key integration that could propel its role in Bitcoin-based decentralized finance (DeFi). According to a press release, Mysten Labs, the development studio behind Sui, is aiming to bring sBTC into the Sui ecosystem in the coming months.

sBTC, a Bitcoin-backed asset, is fully backed by Bitcoin and has grown to accumulate a market cap of over $94 billion. One sBTC is redeementable for 1 Bitcoin, just as one would redeem one USDT for US $1. Its main benefit is that it is programmable, making it possible to interact with smart contracts and other plays in DeFi.

Sui is preparing to integrate sBTC in the coming months as it aims to become a significant player in Bitcoin DeFi. Ultimately, it hopes to contribute to an industry projected to grow over time.

Indeed, data shows that Bitcoin-based protocols have become large players in the decentralized finance industry. DeFi Llama data shows that Bitcoin has a total value locked (TVL) of over $9.68 billion. Networks like Babylon Protocol, Lombard Finance, Solv Protocol, and Threshold Network lead this growth. In a note, Muneeb Ali, Stacks founder said:

“sBTC is the safest, most decentralized path to making Bitcoin a productive asset. Sui’s DeFi growth and powerful underlying technology make it a natural destination for sBTC. We’re excited to expand BTCfi to a top ecosystem that stands out for its utility and rate of adoption.”

For further details, read: Sui Price Prediction: Why it Surged and What to Expect Ahead of a $120M Unlock.

Stacks aims to capitalize on sBTC’s growing ecosystem through its partnership with Sui. Launched in 2023, it has emerged as the 9th largest chain in the crypto industry, boasting over $2.5 billion in assets and $889 million in stablecoins. Notably, more than 10% of Sui’s total value locked (TVL) comprises Bitcoin.

Decentralized exchange protocols, such as Cetus, Kriya, Momentum, and Bluefin, have processed over $3.6 billion in transactions in the past 7 days and $11.1 billion over the past 30 days. As such, Stacks hopes that sBTC will become a major player in this ecosystem.

Other chains are also working to become large players in the Bitcoin DeFi industry. Cardano is notably ambitious, working to bring Bitcoin on-chain through zero-knowledge proofs. 

Read more: Economist Warns of a Recession: Will Chainlink, Cardano, Solana Prices Crash?