tBTC Integration Brings Bitcoin Liquidity to Sui

tBTC Integration Brings Bitcoin Liquidity to Sui
tBTC Integration Brings Bitcoin Liquidity to Sui

Threshold’s tBTC now live on Sui, enabling Bitcoin holders to access DeFi while unlocking over $500M in liquidity.

tBTC Launch on Sui Enables Native Bitcoin Access to DeFi

The integration of Threshold Network’s tBTC into the Sui Blockchain marks a significant advancement in bridging Bitcoin’s liquidity with decentralized finance infrastructure. This development allows Bitcoin holders to mint tBTC—a tokenized, 1:1 backed version of Bitcoin—directly on the Sui Network, making their BTC interoperable within Sui's fast-growing DeFi ecosystem.

What is tBTC?

tBTC is a decentralized, non-custodial version of Bitcoin on Ethereum and now, on Sui. Backed 1:1 by BTC and secured through threshold cryptography, tBTC allows users to maintain custody-free exposure to Bitcoin while utilizing it across DeFi protocols. Unlike centralized wrapped Bitcoin alternatives, tBTC minimizes reliance on third-party custodians by distributing trust across a network of independent signers.

Why This Matters for Sui

The arrival of tBTC on Sui introduces the potential for over $500 million in Bitcoin liquidity to be utilized in Sui-native protocols. It opens up opportunities for Bitcoin holders to access staking, lending, liquidity provisioning, and yield-generating strategies without moving assets outside of their Sui wallet.

According to Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Labs, the original contributor to Sui:

“tBTC is expected to bring a massive amount of Bitcoin liquidity to Sui, creating a bridge that truly matters—not just for institutions but for everyday people who love Bitcoin. This new integration opens another door to accessible, sovereign BTCFi participation.”

BTCFi: Expanding Bitcoin’s Utility

The emergence of BTCFi—short for Bitcoin DeFi—aims to expand Bitcoin’s role from a passive store of value to an active capital asset within decentralized applications. By leveraging tBTC on a performant network like Sui, users gain access to high-throughput, low-latency DeFi use cases without compromising on decentralization.

Sui has already seen promising adoption: over 600 BTC (approximately $65 million) have been bridged into the ecosystem since February 2025. BTC-backed assets now represent more than 10% of the total value locked (TVL) on Sui, which currently exceeds $1.83 billion, according to DeFiLlama.

Secure, Scalable Bitcoin Integration

Threshold Network, which supports tBTC, is a decentralized protocol combining cryptographic primitives with blockchain infrastructure. It leverages threshold cryptography, a technique where private keys are divided among multiple parties, reducing the risk of single-point failure. This approach ensures a secure, trust-minimized mechanism for bridging Bitcoin into other blockchain ecosystems.

Callan Sarre, Co-Founder at Threshold Labs, emphasized:

“Bitcoin was designed to be used, not locked away. With tBTC coming on Sui, we’re combining the security of threshold cryptography with a high-throughput network to create a new standard for Bitcoin utility.”

As of July 2025, tBTC has a market capitalization exceeding $570 million, with over 5,265 tBTC tokens in circulation, according to CoinGecko.

Conclusion

The integration of tBTC into Sui represents a pivotal development in the evolution of BTCFi. It unlocks substantial liquidity for DeFi applications while maintaining the decentralization ethos of Bitcoin. For Sui, it signals increasing maturity as a multi-asset ecosystem capable of attracting cross-chain capital and serving as a foundational layer for next-generation decentralized finance.


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