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Key Takeaways:

Bitcoin Staking on Sui: Starting December, BTC holders can stake Bitcoin on Babylon Layer 2 via Sui, minting LBTC as a liquid staking token for DeFi use.
Enhanced Bitcoin Liquidity: LBTC will unlock Bitcoin’s $1.8T liquidity, enabling lending, borrowing, and trading in the Sui ecosystem.
Sui’s DeFi Momentum: The integration strengthens Sui’s position as a high-performance blockchain, leveraging its $1.4B in TVL for decentralized applications.

Starting in December, Bitcoin holders can stake BTC on Babylon, a Bitcoin layer-2 (L2) solution, via the Sui network.

This initiative, announced by Babylon Labs and Lombard Protocol, aims to expand decentralized finance (DeFi) opportunities for Bitcoin holders.

Sui 🤝 @babylonlabs_io ➕ @Lombard_Finance

With our powers combined, we’re bringing Bitcoin liquidity to the Sui ecosystem.

That’s right, Bitcoin holders – you’ll soon be able to stake your BTC and receive $LBTC natively minted on Sui. 🤯
— Sui (@SuiNetwork) November 25, 2024

By staking BTC on Babylon, users can mint LBTC, Lombard’s liquid staking token (LST), to access Sui’s DeFi ecosystem for activities like lending, borrowing, and trading.

The project seeks to bring Bitcoin liquidity, worth approximately $1.8 trillion, into Sui’s ecosystem, positioning LBTC as a key collateral asset.

Blockchain developer Cubist is building the necessary infrastructure for staking, minting, and bridging BTC to Sui.

We're pleased to announce a strategic initiative with @babylonlabs_io and @cubistdev to bring Bitcoin to @SuiNetwork.

By combining the innovation, security, and leadership of each protocol, we aim to unlock Bitcoin’s $1.8T market potential in Sui’s thriving DeFi ecosystem. pic.twitter.com/nhGPsbTrQe
— Lombard | LBTC (@Lombard_Finance) November 25, 2024

Jacob Phillips, Lombard Protocol co-founder, highlighted Bitcoin’s untapped potential, emphasizing the partnership’s focus on secure and liquid participation in on-chain finance.

Since its 2023 launch, Sui has become a high-performance blockchain with $1.4 billion in total value locked (TVL), often referred to as a “Solana killer” for its efficiency.

Bitcoin LSTs, like Lombard’s LBTC, already represent $4.5 billion in TVL.

This move further integrates Bitcoin with DeFi, unlocking new opportunities for BTC holders to leverage their assets within evolving blockchain ecosystems.