Phase 2 of tBTC Integration Launches on Sui, Expanding Bitcoin DeFi

Threshold Network and Sui have kicked off Phase 2 of their tBTC integration to bring Bitcoin deeper into Sui’s DeFi ecosystem. Building on Phase 1’s success—where over $10 million in tBTC was supplied on Alphalend and Bitcoin assets made up more than 20% of Sui TVL—Phase 2 launches seamless cross-chain flow via Wormhole and new auto-optimizing yield strategies. The AlphaFi Auto-Looping Vault will compound lending rewards multiple times daily without entry or exit fees. Expanded liquidity pools on Bluefin and community campaigns with ecosystem partners aim to boost user engagement. This tBTC integration delivers enhanced Bitcoin DeFi access, composability, and yield potential on Sui, making it easier for traders to bridge BTC onchain and earn optimized returns.
Bullish
The Phase 2 launch of the tBTC integration on Sui is bullish for the market. It expands Bitcoin utility with optimized yield products and seamless cross-chain flow via Wormhole, likely increasing demand for tBTC and SUI tokens. Similar upgrades to onchain Bitcoin tools—even on Ethereum—have driven TVL growth and higher trading volumes. This deeper DeFi integration may boost short-term trading momentum and support long-term value creation by establishing Sui as a strong BitcoinFi hub.