Grand Cayman, Cayman Islands, November 25th, 2024 - Babylon Labs and Lombard Protocol have announced a strategic initiative to integrate Bitcoin into the Sui blockchain. This collaboration aims to onboard Bitcoin liquidity, leveraging LBTC as a collateral asset, and enhancing the decentralized finance (DeFi) ecosystem.
Starting December, Bitcoin holders will be able to stake their BTC through Babylon's staking protocol and receive LBTC, a liquid staking token from Lombard Protocol. This integration is expected to unlock Bitcoin's $1.8 trillion liquidity within Sui's DeFi framework, facilitating lending, borrowing, and trading.
Lombard's LBTC token has previously achieved over $1 billion in minted assets on Ethereum, with significant activity in DeFi applications. The partnership with Cubist aims to ensure secure management of deposits and staking operations.
Jameel Khalfan from Sui Foundation emphasized the importance of this collaboration, stating it allows users across blockchain ecosystems to engage in a robust financial services environment with Bitcoin at its core. Jacob Phillips from Lombard highlighted the untapped potential of Bitcoin's market capitalization and the goal of enabling Bitcoin holders to participate fully in on-chain finance.
With the integration of Bitcoin into Sui, the DeFi ecosystem is poised for significant growth, attracting more users and enhancing the utility of Bitcoin in decentralized finance.