Sui is ramping up its push into Bitcoin decentralized finance (BTCfi) by integrating sBTC and supporting the Stacks network—moves that could position it as a key player in institutional-grade BTC DeFi.
In a May 1 announcement, the Sui Foundation revealed plans to incorporate sBTC—a decentralized, Bitcoin-backed asset developed by Bitcoin layer-2 protocol Stacks. This integration will enable BTC holders to earn yield, lend, borrow, and trade without relying on centralized custodians, all on Sui’s high-performance blockchain infrastructure.
As part of this move, Sui will also become a validator on the Stacks network, reinforcing its commitment to decentralization and scalability. Mysten Labs co-founder Adeniyi Abiodun emphasized the significance of the development, stating that the partnership enables Bitcoin to evolve from a passive asset into an active component of a thriving DeFi ecosystem.
The integration comes when interest in BTCfi surges, with over $6.5 billion currently locked in Bitcoin DeFi protocols. Sui’s object-based architecture and parallel transaction execution are designed to support such growth at scale. In the past month alone, Sui’s total value locked (TVL) surged by 50%, hitting $1.8 billion—over 10% of which is now tied to BTC and related assets, according to data from CoinMarketCap.
The momentum extends beyond DeFi activity. Stablecoin inflows into Sui hit a record $888 million on May 1, according to DeFiLlama, and On-chain analyst Torero Romero recently noted that nearly 29% of Ethereum outflows through the Wormhole bridge in the past year have landed on Sui.
Institutional interest is also gaining pace. Grayscale has introduced a SUI Trust, giving accredited investors access to the network. At the same time, a recent partnership with xPortal and xMoney has enabled SUI to be used across Europe via a Mastercard-powered virtual card.
Meanwhile, in 2024, Sui announced that Circle’s USDC stablecoin was now natively available on the Sui network. The integration was expected to strengthen the Sui ecosystem by increasing liquidity and improving the user experience.
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