Sui Network Expands to Bitcoin DeFi (BTCfi) with Babylon Integration

The latest generation layer 1 blockchain, Sui Network has announced its integration with Babylon – a recently launched Bitcoin staking protocol, to join BTCfi and become a Bitcoin-Secured Network (BSN). 

The move positions Sui among the first blockchain to utilize Bitcoin’s unparalleled security and $1.5 trillion liquidity pool while marking a significant milestone in the rapidly evolving ecosystem of Bitcoin DeFi (BTCfi). The announcement has sparked widespread excitement within the crypto community as it signals a new era where entire crypto ecosystems can leverage Bitcoin’s security infrastructure to power decentralized applications (dApps). 

With the integration to Babylon protocol, Sui Network will now tap into Bitcoin’s unanimous security model and enable developers to build dApps that are not only scalable but also fortified by the most robust blockchain in existence.

Launched earlier this week, Babylon transforms Bitcoin into a foundational layer for proof-of-stake security and liquidity in the new age DeFi ecosystem.

Unlike traditional proof-of-stake models where consensus relies on native token inflation to secure networks, Babylon allows ecosystems like Sui to leverage Bitcoin staking for offering a more sustainable and secure alternative. This aligns with Babylon’s broader vision of a “Bitcoin-secured decentralized world,” as noted in prior announcements. 

As a high-performance layer-1 blockchain, Sui Network has been steadily gaining traction as a hub for DeFi and Web3 innovation. Its integration with Babylon follows a December 2024 announcement of a collaboration with SatLayer, Babylon’s designated restaking partner. That partnership already laid the groundwork for Sui to tap into Bitcoin’s liquidity while enabling developers unlock new opportunities for users to interact with Bitcoin’s nearly $2 trillion asset base. 

The integration between Sui and Babylon is part of a broader trend where Bitcoin is evolving beyond its role as a digital gold standard.

Historically, Bitcoin’s proof-of-work mechanism limited its use in DeFi, with most innovation occurring on layer-2 solutions like the Lightning Network. However, Babylon Labs is changing the narrative by enabling Bitcoin to secure entire ecosystems through staking protocols. Validators participating in the Babylon ecosystem can earn rewards by validating proof-of-stake chains, with potential delegations tapping into Bitcoin’s $1 trillion market. 

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