Threshold Launches Bitcoin-Backed tBTC on Sui, Tapping Into $500M in Liquidity.

Threshold Network’s tBTC Launches on Sui, Unlocking Over $500M in Bitcoin Liquidity

Threshold Network’s bitcoin-backed token, tBTC, has officially launched on the Sui network, allowing users to directly mint the asset and integrate their bitcoin into Sui’s growing decentralized finance (DeFi) ecosystem.

tBTC is an ERC-20 token fully backed 1:1 by bitcoin, offering a way for users to deploy BTC capital into DeFi applications without giving up custody of their underlying assets. With this collaboration, Sui users can deposit bitcoin and mint tBTC, potentially injecting more than $500 million in BTC liquidity into the network.

This integration aims to empower users to generate additional yield on their bitcoin holdings while freely utilizing tBTC across Sui’s DeFi protocols.

“tBTC is expected to bring a massive amount of Bitcoin liquidity to Sui, creating a bridge that truly matters—not just for institutions but for everyday people who love Bitcoin,” said Adeniyi Abiodun, co-founder and chief product officer at Mysten Labs, the original developers behind the Sui blockchain, in a statement shared exclusively with CoinDesk.

“This new integration opens another door to accessible, sovereign BTCFi participation,” Abiodun added.

BTCFi encompasses a broad spectrum of decentralized finance solutions designed specifically for bitcoin, helping expand its role beyond simply serving as a store of value.

Since February, nearly 600 BTC—worth over $65 million—have already been bridged into the Sui ecosystem. Bitcoin-backed assets now account for more than 10% of the total value locked (TVL) in Sui-based DeFi protocols. At the time of writing, Sui’s DeFi ecosystem held approximately $1.83 billion in locked value, according to data from DeFiLlama.

“Bitcoin was designed to be used, not locked away,” said Callan Sarre, co-founder at Threshold Labs. “With tBTC coming to Sui, we’re combining the security of threshold cryptography with a high-throughput network to create a new standard for Bitcoin utility.”

Threshold Network, which operates as a decentralized protocol blending advanced cryptography with blockchain infrastructure, underpins tBTC to deliver secure and trust-minimized access to bitcoin-powered DeFi applications. As of now, tBTC boasts a market capitalization exceeding $570 million, with a circulating supply of 5,265 tokens, according to data from Coingecko.

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