Bitcoin derivatives hit Starknet and Sui
By: bitcoin ethereum news|2025/05/15 01:45:04
0
Share
This is a segment from the 0xResearch newsletter. To read full editions, subscribe. New forms of bitcoin liquidity are finding their way into emerging blockchain ecosystems, with recent integrations of Lombard’s LBTC and Stacks’ sBTC expanding opportunities for BTC holders in cross-chain DeFi. On Starknet, a new partnership between the Starknet Foundation and Lombard Protocol will introduce LBTC, a fully bitcoin-backed liquidity token. LBTC maintains a 1:1 backing by native BTC reserves, which is bridged into Starknet DeFi. Lombard, a protocol built on top of Babylon, receives BTC deposits, stakes them via Babylon and issues LBTC as a liquid representation of staked BTC. LBTC is intended to be multichain: available on Ethereum, Arbitrum, Sui, Genesis (Babylon) and others. Led by Starkware CEO Eli Ben-Sasson, Starknet has positioned itself as a performant execution layer for Bitcoin, in addition to Ethereum. “Moves like this invigorate a whole new class of builders and users — people who want the credibility of Bitcoin and the creativity of DeFi,” he said. The phased rollout of LBTC will initially focus on bridging and liquidity provisioning, followed by the introduction of staking options in Lombard-powered vaults. These vaults will enable LBTC holders to generate yield without surrendering custody of their underlying bitcoin. While Babylon’s BTC staking is trust-minimized, LBTC introduces additional trust assumptions tied to how Lombard mints and manages tokens and bridges, according to Cubist co-founder Riad Wahby. Cubist provides threshold signature tooling for Lombard and other Babylon ecosystem participants. Having said that, Wahby added, “I feel more comfortable with LBTC, but that’s because we know a lot about their security.” Meanwhile, Sui is preparing to integrate sBTC, the bitcoin-backed token native to the Stacks ecosystem. The token uses a threshold-signature multisig secured by a set of 15 reputable institutional signers, with plans to gradually decentralize by integrating directly into Stacks’ consensus mechanism. The expansion will enable new opportunities for lending, borrowing and trading without compromising Bitcoin’s decentralization, according to Stacks founder Muneeb Ali. Bypassing centralized custodians, “sBTC will be bridged to Sui via a trust-minimized, non-custodial process that preserves Bitcoin’s native security,” Ali told Blockworks. “This collaboration lets us bring bitcoin to where the people are, and introduce more users to the growing bitcoin economy,” he said. Holders of sBTC on Sui will benefit from dual-yield opportunities: a base ~5% BTC reward merely for minting and holding sBTC, plus additional incentives from deploying the asset in Sui DeFi protocols. The decision to integrate sBTC positions Sui as a new alternative hub for institutional BTCfi use cases — the network is already capturing significant bitcoin liquidity, with over 10% of Sui’s total TVL now originating from Bitcoin-derived assets, according to the Sui Foundation. Both integrations signal a growing trend toward major L1s and L2s actively competing to onboard BTC liquidity to enrich their homegrown DeFi offerings. They are part of a trend shifting away from bitcoin derivatives relying on centralized custodians in cross-chain deployments. This should appeal to a subset of bitcoin holders who want to maintain self-custody while reaching for yield. Get the news in your inbox. Explore Blockworks newsletters: Source: https://blockworks.co/news/bitcoin-derivatives-starknet-sui-lbtc-sbtc
You may also like

Morning Report | The South Korean Financial Services Commission plans to expand the regulatory sandbox to include virtual assets; the parent company of the New York Stock Exchange, ICE, has reached a partnership with OKX to jointly establish a cryptocu...
Overview of Important Market Events on June 22

Exclusive Interview with Strategy CEO: Putting Aside the Sale of 32 BTC, the 60 Trillion AI Intelligence is the Ultimate Fate of Bitcoin
Strategy CEO responds for the first time to the controversy over the sale of 32 bitcoins: testing internal processes and breaking the "death spiral" rhetoric, maintaining long-term holding faith, and revealing how the 60 trillion AI intelligence will reshape the bitcoin trading landscape.

TRON revitalizes the image of the bull, creating a more approachable brand character
From Logo to BoNiu, TRON further enhances its brand visual assets.

Will the STRC issuance price discussed with ChatGPT really fall into a death spiral?
Whether this mechanism is a "stabilizer" or an "accelerator" lies in the upcoming prices and interest rates.

The foundation retreats, Ethlabs steps forward: Ethereum welcomes its largest restructuring in history
The Ethereum Foundation is repositioning itself as a lighter protocol governance and maintainer, rather than a primary core builder.

NYSE Parent ICE and OKX Launch Joint Venture: What It Means for Tokenized Stocks
ICE and OKX have announced a joint venture focused on tokenized stocks, but stock futures are already live across crypto markets. Here's what the partnership means, how stock futures work, and why traders are paying attention.
How to Trade Apple and Nvidia on a Crypto Exchange in 2026 (Without Buying Shares)
What are Apple and Nvidia stock futures, and why are crypto traders paying attention? Learn how to trade stock futures with USDT, how they differ from buying stocks, and why platforms like WEEX are expanding beyond Bitcoin in 2026.

Morning Report | Secret Network loses $4.67 million due to cross-chain vulnerability; Michael Saylor releases Bitcoin Tracker information again, may disclose increased holdings data next week
Overview of Important Market Events on June 21

Kalshi's biggest competitor is not Polymarket
The competitive logic of the prediction market has changed.

The second half of the computing power battle: Intel CEO Pat Gelsinger reveals how AI is reshaping the global semiconductor supply chain
Intel CEO Pat Gelsinger's latest discussion: The AI computing power battle has gone beyond the single-point competition of GPUs; the ultimate trump card is to comprehensively restructure the semiconductor supply chain and solve the systemic bottlenecks in advanced manufacturing.

B.AI partners with MiniMax to launch a limited-time free experience of M3, enabling zero-threshold implementation of Agentic productivity through full-stack infrastructure
B.AI and MiniMax launch a limited-time free offer for M3, allowing access to top-tier large model core computing power with no threshold.

A company that was on the verge of bankruptcy has just surpassed Bitcoin in market value
In this wave of AI, capital is clearly more inclined to pay a premium for segments that have real orders, visible supply bottlenecks, and quantifiable profits, which also puts the Crypto AI narrative under more direct scrutiny regarding the certainty of value realization.

The two giants are racing in "credit": loan balances of 9.9 billion vs 14.6 billion USD, Brazil has become the main battlefield
When we see the domestic credit market growing slowly, with major lending platforms and consumer finance companies tightening their strategies and cautiously controlling their volumes; in stark contrast, the overseas credit sector is迎来 a period of rapid expansion.

Rented Belief: How Much of the Bitcoin ETF Fund Flow is Real Money
Looking at it week by week, the ETF capital flow is mainly driven by a hidden arbitrage trade rather than belief.

On-chain finance: On-chain IPOs and on-chain ICOs, a new frontier in the trillion-dollar market
The United States uses stablecoins to export the dollar, uses on-chain IPOs/ICOs to export assets, and uses OnFi to export financial rules.

WEEX Live mode: Monitor 20 trading pairs at once and trade like a pro
WEEX Live mode: Multi-screen desktop layout for 20 pairs, TradingView charts, one-click layout, and smart guides. Trade like a pro now.

WEEX Makes Affiliate Access Easier on the Web and in the App
WEEX now provides a smoother way to access affiliate-related pages on the web and in the app. Users can find the Affiliate entry more easily and go to the right page based on their login and affiliate status.

Customize Your Spot Trading Page: Drag Modules and Move the Order Panel Where You Want It
Set up your WEEX Spot trading page around the way you trade. Drag supported modules, show or hide key panels, move the order panel to the left or right, and use “Reset layout” at any time to return to the default setup.
Morning Report | The South Korean Financial Services Commission plans to expand the regulatory sandbox to include virtual assets; the parent company of the New York Stock Exchange, ICE, has reached a partnership with OKX to jointly establish a cryptocu...
Overview of Important Market Events on June 22
Exclusive Interview with Strategy CEO: Putting Aside the Sale of 32 BTC, the 60 Trillion AI Intelligence is the Ultimate Fate of Bitcoin
Strategy CEO responds for the first time to the controversy over the sale of 32 bitcoins: testing internal processes and breaking the "death spiral" rhetoric, maintaining long-term holding faith, and revealing how the 60 trillion AI intelligence will reshape the bitcoin trading landscape.
TRON revitalizes the image of the bull, creating a more approachable brand character
From Logo to BoNiu, TRON further enhances its brand visual assets.
Will the STRC issuance price discussed with ChatGPT really fall into a death spiral?
Whether this mechanism is a "stabilizer" or an "accelerator" lies in the upcoming prices and interest rates.
The foundation retreats, Ethlabs steps forward: Ethereum welcomes its largest restructuring in history
The Ethereum Foundation is repositioning itself as a lighter protocol governance and maintainer, rather than a primary core builder.
NYSE Parent ICE and OKX Launch Joint Venture: What It Means for Tokenized Stocks
ICE and OKX have announced a joint venture focused on tokenized stocks, but stock futures are already live across crypto markets. Here's what the partnership means, how stock futures work, and why traders are paying attention.
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com



