lows users to move their BTC through the BitVM bridge and use it in decentralized applications while maintaining full exposure to Bitcoin's price.
TL;DR: Bitlayer and Sui have teamed up to bring Peg-BTC (YBTC), a token backed 1:1 by Bitcoin, into the Sui DeFi ecosystem. This asset will allow users to move their BTC through the BitVM bridge and use it in decentralized applications while maintaining full exposure to Bitcoin’s price. The initiative aims to offer more alternatives for those looking to earn yield on their holdings without leaving a secure, Bitcoin-compatible environment.
This bridge will not involve any centralized intermediaries and will use off-chain computation combined with on-chain fraud proofs to ensure that value transfers between Bitcoin and Sui remain decentralized and protected against any manipulation. Once on the network, Peg-BTC can be used in various DeFi tools such as staking, lending, and providing liquidity on decentralized exchanges.
At the latest Token2049 event in Dubai, several traditional firms, including Franklin Templeton, backed the growing trend of injecting BTC liquidity into DeFi ecosystems, highlighting its potential to expand Bitcoin’s utility beyond passive accumulation as a store of value. Peg-BTC’s arrival on Sui addresses that demand and aims to turn BTC into a functional asset within decentralized markets.
Bitcoin Represents 10% of Sui’s TVL
Currently, over 10% of the total value locked in Sui corresponds to Bitcoin-based assets. Since February, more than 587 BTC have flowed into the network’s protocols. The integration of Peg-BTC is expected to increase that figure while offering new opportunities to earn yield.
With over $2 billion in total value locked and 49 active DeFi projects, Sui is working to build infrastructure that supports various BTC-linked assets. The collaboration with Bitlayer and its BitVM technology is a core component of that strategy.
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