YBTC Launches on Sui via Bitlayer’s BitVM Bridge

Bitcoin-backed YBTC arrives on Sui, enabling BTC holders to earn yield through Bitlayer's trustless BitVM bridge.

Bitcoin Finds New Utility on Sui with Launch of Peg-BTC (YBTC) via Bitlayer Integration

In a strategic move that underscores the expanding frontier of BitcoinFi, Bitlayer—an advanced Bitcoin Layer 2 solution leveraging the BitVM paradigm—has officially integrated its BitVM-powered zkBridge with the Sui Blockchain. This integration enables the introduction of Peg-BTC (YBTC), a Bitcoin-backed token designed to unlock yield-generating opportunities for BTC holders within Sui’s high-performance DeFi ecosystem.

The announcement, shared exclusively with CoinDesk, reveals a significant step forward in Bitcoin’s evolving role beyond its traditional “store of value” narrative. The launch of YBTC allows Bitcoin holders to bridge their assets into Sui via Bitlayer’s trust-minimized BitVM bridge, offering them access to a broad range of DeFi applications—staking, lending, borrowing, and liquidity provision—while maintaining full exposure to BTC's underlying value.

“Bitcoin’s dominance as a store of value is unmatched, but its utility in DeFi remains untapped. By integrating Bitcoin’s liquidity into Sui’s ecosystem, Peg-BTC (YBTC) empowers users to earn yield while maintaining direct exposure to BTC’s value—a paradigm shift for BTCFi,” said Charlie Hu, Co-founder of Bitlayer.

What Is Peg-BTC (YBTC)?

Peg-BTC, or YBTC, is a tokenized representation of Bitcoin on the Sui Blockchain. It mirrors the value of BTC 1:1 and is minted when users bridge BTC through Bitlayer’s BitVM-enabled zkBridge. Once on Sui, YBTC can be deployed across multiple DeFi protocols, enabling holders to:

• Stake YBTC via BTC staking protocols to earn rewards
• Lend or borrow against YBTC, unlocking capital efficiency
• Trade and provide liquidity on decentralized exchanges within the Sui ecosystem

Bitlayer’s Trust-Minimized Bridge Technology

Bitlayer represents a major advancement in the Bitcoin L2 landscape. Built on the BitVM framework, Bitlayer enhances Bitcoin’s programmability without altering its core consensus mechanisms. The solution utilizes off-chain computation and on-chain fraud proofs—paving the way for smart contract functionalities and secure interoperability with other chains.

Its zk-powered BitVM bridge offers a decentralized alternative to centralized custodians and traditional wrapped BTC solutions. This approach ensures enhanced security, reduced reliance on trust, and seamless cross-chain BTC liquidity.

Why Sui?

Sui is a Layer 1 blockchain engineered for ultra-fast, low-cost transactions, powered by parallel execution and a unique object-based data model. As of now, Sui’s DeFi ecosystem includes over 49 active protocols and boasts more than $2 billion in total value locked (TVL), according to DeFiLlama.

With YBTC joining the ecosystem, Sui unlocks deeper BTC liquidity and caters to a growing demand for decentralized Bitcoin-based financial products.

“Sui is taking a holistic approach by onboarding a full stack of infrastructure and BTCFi asset options into the ecosystem, including staking, restaking, bridge integrations, WBTC, sBTC, and now Peg-BTC (YBTC),” said Adeniyi Abiodun, Co-Founder and CPO at Mysten Labs, the development team behind Sui.

“Key integrations like Bitlayer’s BitVM bridge are transforming the experience for Bitcoin holders by enabling them to earn, engage with DeFi, and put their assets to work on Sui,” he added.

BitcoinFi Momentum Continues to Build

BitcoinFi—short for Bitcoin Decentralized Finance—is rapidly gaining traction. At the recent Token2049 Conference in Dubai, the concept was spotlighted as a key trend shaping the future of crypto. Financial giant Franklin Templeton even voiced support for the idea, viewing it as a catalyst for BTC’s next wave of adoption.

With this integration, over 587 BTC has already flowed into Sui-based DeFi protocols since February, representing more than 10% of the ecosystem’s total TVL. YBTC is poised to expand this momentum, offering BTC holders a secure and productive way to deploy their capital in the DeFi space.

Conclusion

The collaboration between Bitlayer and Sui marks a transformative chapter in Bitcoin’s journey. By enabling BTC holders to actively participate in decentralized finance, Peg-BTC (YBTC) bridges the gap between Bitcoin’s store-of-value legacy and the yield-generating opportunities of modern DeFi.

As the BitcoinFi movement continues to gather steam, integrations like these will play a crucial role in unlocking the full potential of Bitcoin in the multi-chain future.

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