Babylon Labs and Lombard Protocol are partnering with the Sui Foundation to bring liquid Bitcoin (BTC) staking to the Sui blockchain network.
According to the press release shared on Nov.25, starting from next month, Bitcoin holders can stake their BTC on Babylon, and receive LBTC, Lombard’s liquid staking token (LST), in return.
LBTC will become a key asset in Sui’s DeFi world, opening up opportunities for lending, borrowing, and trading, while unlocking Bitcoin’s $1.8 trillion in market value on Sui. This means Bitcoin holders can use their BTC in new ways.
Cubist, a blockchain development company, is building the infrastructure needed to deposit, stake, mint, and move BTC into Sui’s network.
According to Jacob Phillips, the co-founder of Lombard, the team-up aims to build “a future where Bitcoin holders can fully participate in the next generation of on-chain finance without compromising security or liquidity”.
Meanwhile, Sui is quickly growing as a platform for fast and efficient decentralized apps (DApps). By 2024, it had reached $1.4 billion in total value locked (TVL), according to DeFiLlama, and is considered a strong contender to Solana in the blockchain space.
Lombard’s LBTC is the largest liquid staking token on Babylon, though staking rewards have yet to be distributed. Bitcoin LSTs have a total market value of $4.5 billion, with Lombard holding around $1 billion of that.
These Bitcoin LSTs, like SolvBTC, are used to stake BTC as collateral in proof-of-stake (PoS) networks, earning a yield of about 1.2% annually.
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