Bitcoin Adoption On Sui Gains Momentum As Threshold Network And Sui Launch Phase 2 Of tBTC Integration

In Brief

Threshold Network and Sui Network launched Phase 2 of tBTC integration, expanding Bitcoin’s use in DeFi on Sui with new bridges and increased liquidity opportunities.

Threshold Network, the decentralized protocol behind the Bitcoin-backed asset tBTC, announced alongside Layer 1 blockchain Sui Network the launch of Phase 2 of their tBTC integration, enabling new bridges and expanding opportunities for Bitcoin use in decentralized finance (DeFi).

For years, Bitcoin, the largest cryptocurrency, has largely remained idle as “digital gold.” On Sui, however, tBTC and other BTCFi ecosystem deployments have introduced new avenues for Bitcoin liquidity, fostering active adoption across various financial instruments. On Alphalend, a lending protocol on Sui, users supplied over $10 million in tBTC, with nearly half borrowed, demonstrating strong demand for Bitcoin-based credit markets. Additionally, liquidity pools and lending markets contributed more than $2.8 million in extra TVL, reflecting widespread user participation.

Phase 1 established that tBTC had achieved product–market fit on Sui, creating a foundation for the broader expansion envisioned in Phase 2

“Phase 1 proved that there is a growing demand for trust-minimized Bitcoin onchain, and Sui is the perfect home for it,” said Maclane Wilkison, CEO and Co-Founder of Threshold Labs, in a written statement. “When users bridge Bitcoin, supply it to markets, and actively borrow against it, that is the clearest signal of product–market fit,” he added.

Sui is among the first non-EVM networks to address the increasing demand for onchain Bitcoin utility. Of the approximately 19.5 million BTC currently in circulation, only a small portion is actively utilized in DeFi, with the majority concentrated on Ethereum. While Ethereum has traditionally dominated Bitcoin DeFi activity, Sui is quickly capturing market share by offering Bitcoin-backed lending, trading, and yield opportunities. From Alphalend’s money markets to Bluefin liquidity pools and collateralized BTC options on Bucket Protocol, Sui is establishing itself as an emerging hub for Bitcoin-based DeFi.

tBTC Phase 2 Launch On Sui Introduces Seamless Bridging And Optimized Yield Opportunities For Bitcoin

Bitcoin represents over 50% of the global cryptocurrency market cap, and the launch of tBTC on Sui taps into the massive market opportunity to make Bitcoin programmable, composable, and yield-bearing.

“Bitcoin DeFi is having its breakout moment on Sui, powered by community demand and innovative builders like Threshold who are meeting that demand,” said Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Labs, in a written statement. “Sui has become a home for Bitcoin liquidity in record time as users look to put their once static Bitcoin to use in Sui’s dynamic onchain environment,” he added.

Phase 2 builds on tBTC’s initial deployment on Sui by introducing seamless bridging and automated yield optimization strategies

tBTC can now be transferred from Ethereum to Sui via the Threshold App, powered by Wormhole, enabling smooth cross-chain movement. The AlphaFi auto-looping vault compounds lending rewards multiple times daily, optimizing returns for deposited tBTC in Alphalend’s money market with a low-cost performance fee and no entry or exit fees

Community campaigns for AlphaFi and Alphalend will engage users through interactive quests, promoting participation in lending, borrowing, and auto-looping vaults. Phase 2 signifies substantial progress for BitcoinFi on Sui, building on Phase 1’s confirmation of product–market fit, which saw millions in liquidity supplied and strong engagement across lending, trading, borrowing, and community initiatives

Together with other ongoing BitcoinFi efforts, this phase expands cross-chain access, structured yield products, and capital-efficient strategies, demonstrating growing market demand, deeper integration of Bitcoin into Sui’s financial ecosystem, and a pathway toward sustained adoption and value creation.