Bitcoin (BTC) Holders Can Stake Their Assets on Sui Blockchain Starting December

This initiative will allow users to mint LBTC, a liquid staking token (LST) from Lombard, enabling Bitcoin liquidity to flow into the Sui ecosystem.

Bitcoin (BTC) holders will soon be able to stake their BTC on the Sui blockchain, thanks to a collaboration between Babylon Labs and Lombard Protocol. This initiative will allow users to mint LBTC, a liquid staking token (LST) from Lombard, enabling Bitcoin liquidity to flow into the Sui ecosystem.

Babylon builds native use cases for BTC to bring Bitcoin security and liquidity to decentralized systems.

“We are excited that Sui shares this vision and is teaming up with us and our collaborators to make this a reality on Sui.”

As reported by CNF, Bitcoin Cash (BCH) and Algotech (ALGT) are among the top crypto coins investors are buying massively, as covered in a recent CNF update.

Fisher Yu, co-founder & CTO of Babylon Labs, stated in a post that:

“LBTC is set to become a key asset in Sui’s decentralized finance (DeFi) space, supporting lending, borrowing, and trading while unlocking Bitcoin’s vast $1.8 trillion liquidity.”

Growing DeFi Opportunities on Sui

Cubist, a blockchain builder, is creating the infrastructure to facilitate staking, minting, and bridging BTC to Sui. Lombard’s co-founder, Jacob Phillips, highlighted Bitcoin’s largely untapped potential, underscoring this move as a step toward integrating Bitcoin holders into modern on-chain finance without sacrificing liquidity or security.

“We are excited to collaborate with Babylon Labs and Cubist to bring Bitcoin liquidity to Sui.”

Launched in 2023 and already boasting $1.4 billion in total value locked (TVL), Sui is positioning itself as a high-performance DeFi platform and a strong competitor to networks like Solana.

Competition Among Bitcoin LSTs

Bitcoin liquid staking tokens are gaining momentum, collectively commanding a TVL of $4.5 billion. Lombard’s LBTC, the largest on Babylon, is set to expand its presence once staking rewards begin.

Currently, competitors like SolvBTC on CoreChain offer around 1.2% APR, and Solv Protocol recently launched its Bitcoin LST on Solana to attract BTC holders. This race to innovate reflects the growing demand for yield opportunities in the Bitcoin ecosystem.

By integrating Bitcoin staking, Sui aims to enhance its DeFi landscape and attract a broader user base, leveraging the synergies of Babylon’s infrastructure and Lombard’s expertise in liquid staking.

Bitcoin (BTC) is trading at $92,353.27 at the time of writing, down 5.61% in the past day and up 0.67% in the past week.