- Babylon Labs and Lombard Protocol are looking to bring liquid Bitcoin to the Sui ecosystem
- Cubist will create infrastructure to depositing, minting, and stacking BTC on Sui
- LBTC will become a core asset and unlock $1.8 trillion worth of Bitcoin liquidity to Sui
Babylon Labs and Lombard Protocol are preparing to take a big step and unlock Bitcoin staking capabilities for Solana’s main competitor Sui.
They are going to integrate the LST liquid staking token into Sui and add LBTC to bring Bitcoin’s $1.8 trillion worth of liquidity to Sui.
More About Bitcoin Staking for Sui
According to the announcement, Babylon Labs and Lombard Protocol are working to bring liquid Bitcoin staking to Sui. They enable staking BTC on Babylon, and mint LBTC, Lombard’s liquid staking token (LST) to bring liquid Bitcoin staking to Sui.
Sui and Babylon said:
“Initiative aims to onboard Bitcoin liquidity to the Sui ecosystem, growing the decentralized finance ecosystem with LBTC as a collateral asset, and inviting Bitcoin holders to do more with their Bitcoin via LBTC.”
They added:
“It will become a core asset in Sui’s DeFi ecosystem, enabling lending, borrowing, and trading to unlock Bitcoin’s $1.8 trillion USD worth of liquidity on Sui.”
In turn, Jacob Phillips, Lombard’s co-founder added:
“Bitcoin’s $1.8 trillion market capitalization represents immense untapped potential. Cubist seeks to facilitate “a future where Bitcoin holders can fully participate in the next generation of on-chain finance without compromising security or liquidity.”
The technical side will be blockchain developer Cubist, which will develop the infrastructure and other technical implementations of this initiative.
This could be a very big deal, as Bitcoin’s capitalization is now up to about $1.88B, and in many ways, it’s really not being used other than for direct purposes.
Lombard Protocol helps solve this problem, and it has a TVL of around $1B already. Adding to Sui’s ~$1.4B LTV, the whole thing could attract even more capital, and expand the ecosystem making this compete with Solana in earnest.
Conclusion
This is a big announcement that has just as much infrastructural significance for the entire Web3, and the rapidly growing Bitcoin in particular.
We’ll be watching the development closely, stay tuned.
