Sui To Become Bitcoin-Secured Network As Part Of Babylon's Phase 3

Sui, one of the most innovative Layer 1 blockchains, is set to become a Bitcoin Secured Network (BSN) through an integration with the Babylon Bitcoin staking protocol.

This move, announced on April 15, 2025, builds upon the partnership between Sui and Babylon, which was first established last year, and marks a major milestone for both the Sui network and the Bitcoin ecosystem.

As a Bitcoin Secured Network, Sui will inherit the security and liquidity benefits of Bitcoin, supported by staked native BTC. This allows Bitcoin holders to participate in securing the Sui network while maintaining full custody of their BTC, making it easier for them to engage with decentralized finance (DeFi) opportunities. The integration enhances the cross-chain functionality of Sui, unlocking new staking rewards and providing a seamless path for Bitcoin capital to flow directly into the Sui ecosystem.

Sui's decision to integrate with Babylon signifies the broader trend of using Bitcoin’s vast market value—currently at $1.5 trillion—to secure scalable, fast, and programmable blockchain ecosystems like Sui. This collaboration introduces Bitcoin-backed scalability, expanding the utility of Bitcoin beyond its traditional role as a store of value and medium of exchange.

What This Means for Sui and the Broader Blockchain Ecosystem

Sui’s Bitcoin Secured Network status opens the door for a new economic primitive: Bitcoin-backed scalability. This partnership enables Sui to leverage Bitcoin's liquidity and security to foster the growth of decentralized applications (dApps) and services that benefit from Bitcoin's decentralized, battle-tested security infrastructure.

This integration enhances Sui’s position as a key player in the world of Bitcoin DeFi (BTCFi). By combining the strengths of Bitcoin and Sui, this partnership helps unlock the potential for Bitcoin holders to transform idle assets into active, reward-generating pillars of the digital economy, thus creating new value within the ecosystem.

How the Babylon Bitcoin Staking Protocol Works

The Babylon Bitcoin staking protocol allows Bitcoin holders to stake their BTC without losing custody of their assets. Through this protocol, Bitcoin holders can participate in securing the Sui network, earning staking rewards in the process. The process offers a safe and simple way to contribute to the Sui ecosystem while maintaining full control over Bitcoin holdings.

This integration with Babylon’s protocol enables Sui to tap into Bitcoin’s massive liquidity pool, allowing it to scale its infrastructure while strengthening its security model. Babylon’s protocol has already proven its ability to integrate with several consensus stacks, including the Cosmos CometBFT stack, OP stack, and the Arbitrum stack. Now, Sui’s unique Mysticeti consensus, which uses DAG-based parallelized block production, further highlights the modularity of Babylon's BTC staking capabilities across diverse proof-of-stake systems.

The Bigger Picture: Bitcoin’s Role in Decentralized Finance

Bitcoin has long been the cornerstone of the crypto world as the most secure and widely adopted asset. However, its traditional proof-of-work mechanism has limited its role in DeFi applications. With the Babylon protocol, Bitcoin now has the potential to play a more active role in DeFi by providing its security and liquidity to decentralized networks like Sui.

Babylon Labs, known for developing the world’s first trustless and self-custodial Bitcoin staking protocol, has been instrumental in turning Bitcoin into an infrastructure layer for decentralized systems. Babylon's vision is to extend Bitcoin's utility, making it a foundational element for DeFi ecosystems and enabling more secure and sustainable interactions across blockchain networks.

A Look Ahead

As the Sui network integrates deeper into the Bitcoin ecosystem, the possibilities for Bitcoin’s role in decentralized finance expand. Bitcoin holders now have more options than ever to put their assets to work while ensuring they remain securely in control. For the broader blockchain space, this partnership sets the stage for a future where Bitcoin's security and liquidity can drive new forms of innovation, ultimately advancing the vision of a fully decentralized financial world.