Bitcoin Liquidity Comes to Sui With OFT-Powered WBTC Integration

This article was first published on Deythere.

In partnership with BitGo and LayerZero, Wrapped Bitcoin (WBTC) is now natively supported on Sui using the new “Omnichain Fungible Token” (OFT) standard. Now, liquidity from Bitcoin can flow cross-chain straight into SUI with just gas fees, no added wrapping and full support across the DeFi offerings on the network. 

The integration of WBTC on SUI further expands Bitcoin’s reach into rapid, low-cost ecosystems and could help drive Sui’s increasing popularity among BTC holders as well as DeFi users.

Where It Stands: Native WBTC and the OFT Standard

WBTC has always been an ERC-20 token, so while it could represent value for Bitcoin, using it on other blockchains would require a bridge and some kind of wrapping or re-wrapping, typically fees-laden and fragmented. 

With the addition of Sui integration, WBTC has now been deployed on Sui in OFT form and instead operates as a native asset backed by the chain rather than as a bridge token.

With the OFT standard, WBTC cross-chain transfers become simple. Instead of wrapping/unwrapping, user has to pay only the native gas fee. Liquidity is pooled and interoperable; WBTC behaves the same wherever it is used.

BitGo is still the custodian of the actual Bitcoin reserves that support WBTC. That means each WBTC on Sui is still 1:1 backed with actual BTC which preserves the value proposition, but makes it useful across chains.

How WBTC on Sui Works – Flow, Use Cases and What Can be Accessed

With WBTC now live on Sui, there are several ways for Bitcoin holders and DeFi users to get involved:

If users already possess WBTC on Ethereum or another compatible chain, then they can spin it up to Sui using cross-chain tools like Stargate and get the native OFT-WBTC on Sui rather than a bridged or wrapped version. 

Once on Sui, WBTC can be utilized in numerous DeFi applications such as lending/borrowing, collateralizing funds for loans or other services that comprise the primitive to accommodate exposure to a basket of assets and continued innovations driven by newly integrated protocols in Sui’s ecosystem. 

Many of the leading Sui DeFi applications, like lending platforms, DEXes, and automatic market makers, already support the new WBTC. Due to Sui’s low-fee, high-speed setup, transactions involving WBTC are both fast and cheap when compared with other bridges. 

Transfers settle quickly while fees remain low, and liquidity is shared across chains.

This streamlined process eliminates friction for Bitcoin holders looking to tap into DeFi,  getting rid of many of the pain points that previously dissuaded cross-chain utilization.

Ecosystem and Use-Case Expansion

Sui on WBTC seems to only be the beginning. Several DeFi protocols on Sui, such as DEXes, lending markets, and liquidity pools, have already started supporting the new WBTC, but expect more integrations to emerge. 

The more builders that leverage the OFT-WBTC, the more new products can be anticipated. BTC-backed loans, synthetic assets, yield farming and potentially BTC-denominated derivatives, all on Sui natively.

In parallel to WBTC, Sui is also busy developing its stablecoin ecosystem. The recently announced native stablecoin, USDsui, was recently unveiled to power payments, on-chain commerce and stable-value transactions throughout the Sui ecosystem.

Combined, native WBTC and stablecoins such as USDsui could make Sui a full-fledged multi-asset DeFi hub where users are able to move value, swap assets, yield-farm and borrow/lend while transacting across currencies, all through guaranteed fast-settlement with low fees.

Conclusion

Native WBTC on Sui getting launched and enabled by BitGo and LayerZero makes Sui one of the essential cross-chain liquidity upgrades for late 2025. 

This will add Bitcoin liquidity to Sui’s high-velocity, low-fee universe and provide BTC holders with new DeFi choices, thus consolidating Sui’s role in the larger multi-chain world.

Glossary

WBTC (Wrapped Bitcoin): Bitcoin tokenized on Ethereum as an ERC-20 token with a 1:1 peg to the value of Bitcoin that is held in custody by centralized parties.

OFT (Omnichain Fungible Token): A token standard on LayerZero that enables assets like WBTC to exist natively and transfer freely across blockchains without the need to wrap it in additional layers.

Native Integration: The ability for an asset to be issued directly on a blockchain (rather than through a bridge), enabling it to be fully supported by that chain’s protocols and infrastructure.

Cross-chain Liquidity: The ability for an asset to be moved across multiple blockchain networks, resulting in wider accessibility and composability.

DeFi (Decentralized Finance): Financial applications on a blockchain network that enable trading, borrowing, lending and other services without traditional intermediaries.

Frequently Asked Questions About WBTC on SUI 

What happened with WBTC on Sui?

WBTC has been natively deployed on Sui through the OFT standard, users can simply bridge Bitcoin-backed tokens across chains at gas fee-only costs, without any added wrapping or complicated bridging.

Who backs the BTC in WBTC?

All WBTC is price equivalent to real BTC 1:1 backed by BTC held at a regulated trust company enabling cross-chain use.

What DeFi apps on Sui support new WBTC?

Major Sui DeFi Protocols, from lenders, to DEXes to liquidity-pool platforms, now also supports WBTC for swaps, lending and providing liquidity etc.

So does this mean that Bitcoin is now working on Sui?

Yes, with native WBTC, Bitcoin’s value can be utilized throughout Sui’s ecosystem for DeFi applications, loans, swaps and other on-chain transactions.

Why does this matter for cross-chain interchange?

It bridges Bitcoin liquidity across chains, minimizes fragmentation, streamlines transfers and ensures that assets can move safely and efficiently between blockchains.

References

The Sui Blog
Bitget
Blockchain News
The Digital Asset Infrastructure Company
CryptoRank