Sui Receives Franklin Templeton Investment, Introduces Bitcoin Staking

The Sui Foundation, which is focused on the advancement and adoption of the Sui network, has entered into a strategic partnership with Franklin Templeton Digital Assets, to grow the Layer 1's ecosystem and explore novel use cases. Simultaneously, Sui has joined forces with Babylon Labs, Lombard, and Cubist to integrate Bitcoin liquidity into its ecosystem, unlocking a new era of programmable Bitcoin within DeFi.

Franklin Templeton’s collaboration with Sui builds on the asset manger's existing investments in the Sui ecosystem, and aims to bolster the development of blockchain-based solutions. The collaboration will focus on value creation by enabling developers to deploy novel on-chain technologies using Sui’s highly scalable and composable platform, according to a statement.

"Sui was originally inspired by some of the challenges Franklin Templeton Digital Assets is helping to solve, particularly those that exist within decentralized finance today,” said Jameel Khalfan, Sui head of ecosystem development, said. 

Franklin Templeton’s foray into blockchain began years ago with node validation and blockchain research. The firm has since launched tokenized money market funds on Base, Stellar, Aptos, Avalanche, Arbitrum and Polygon.

"At times, we partner with visionary teams creating new paradigms. Other times, we partner with transformative paradigms brought to life by exceptional teams. With Sui, we’ve found both — remarkable people and cutting-edge technology," Kevin Farrelly, vice president and director of digital asset management at Franklin Templeton, said about the investment on X.

Bitcoin Liquidity Comes to Sui

Sui’s partnership with Babylon Labs, Lombard, and Cubist introduces Bitcoin staking to the Sui blockchain, enabling BTC holders to stake their assets via Babylon’s protocol. In return, they’ll receive LBTC—Sui-native liquid Bitcoin tokens. This initiative aims to unlock Bitcoin’s $1.8 trillion liquidity for DeFi applications, offering lending, borrowing, and trading opportunities without sacrificing security or liquidity, according to an announcement on Tuesday.

“Bitcoin's $1.8 trillion market capitalization represents immense untapped potential. Together, we are building a future where Bitcoin holders can fully participate in the next generation on on-chain finance without compromising security or liquidity,” said Jacob Phillips, co-founder of Lombard.

Babylon Labs, known for pioneering Bitcoin security and liquidity solutions, is central to the initiative, with Cubist providing critical infrastructure for secure deposits, minting, and staking. Lombard’s LBTC, which has surpassed $1 billion in assets on Ethereum, will be a cornerstone of Sui’s burgeoning DeFi landscape.

NAVI, a prominent borrow-lend protocol in the Sui ecosystem, has already expressed interest in supporting LBTC pools. This marks an early signal of ecosystem-wide enthusiasm for Bitcoin’s integration into Sui’s programmable framework.

Growing momentum

Sui describes itself a "first-of-its-kind Layer 1 blockchain and smart contract platform designed to make digital asset ownership fast, private, secure, and accessible."

Sui has emerged as a secure and scalable platform for applications ranging from gaming and tokenized securities to DeFi tools like DeepBook, a decentralized limit order book, and Karrier One, a decentralized mobile carrier network. Recent developments include the integration of native USDC stablecoin, eliminating risks associated with bridged assets.

Sui has rode on Bitcoin's bullish momentum, with its token price growing by almost 80% in the past month as investor confidence in the Sui ecosystem grows. The network, however, suffered its first significant network outage on November 21, halting block production for over two hours as a result of a bug in the network's congestion control system.