Merlin Chain Brings M-BTC to Sui Network, Enhancing Bitcoin Liquidity in DeFi

Merlin Chain integrates M-BTC with Sui, bringing fast, low-cost Bitcoin DeFi access to a broader user base.

22 August 2025, 15:25 published Updated 22 August 2025, 15:25

Bitcoin DeFi Grows as Merlin Integrates M-BTC with Sui Network

Merlin Chain, a Bitcoin Layer-2 protocol, has announced a strategic integration with Sui Network, a Layer-1 blockchain known for its high-speed processing and low transaction fees. This partnership aims to accelerate Bitcoin’s presence in decentralized finance (DeFi) by bringing M-BTC, Merlin’s flagship Bitcoin derivative product, onto the Sui blockchain.

The move not only strengthens both networks’ capabilities but also opens new avenues for Bitcoin holders to engage with the DeFi ecosystem in a seamless, low-cost environment.

M-BTC Launches on Sui: Unlocking Bitcoin Liquidity

The integration, made official today, marks a significant step in Merlin Chain’s effort to enhance Bitcoin’s utility beyond its traditional role as a store of value. Through this launch, Bitcoin holders can now mint M-BTC on Sui by depositing BTC into Merlin’s system. This synthetic version of Bitcoin is fully compatible with DeFi applications on the Sui network.

According to the company, the collaboration is expected to inject millions of dollars worth of Bitcoin liquidity into Sui, providing users with opportunities to participate in yield farming, staking, and other DeFi functions — all while maintaining exposure to BTC.

“Our partnership with Sui reinforces our commitment to expanding Bitcoin’s role in DeFi,” said a Merlin Chain spokesperson. “M-BTC’s integration into Sui is a natural step toward building a more efficient, cross-chain future.”

Strengthening Bitcoin DeFi with Speed and Scalability

Sui Network’s infrastructure — which is optimized for minimal latency and near-instant transaction finality — offers a strategic advantage for Merlin and its users. By leveraging these performance metrics, M-BTC holders can now enjoy faster transaction processing and lower gas fees compared to traditional networks like Ethereum.

This combination of Bitcoin’s value proposition with Sui’s technical efficiency enhances the attractiveness of both platforms. Merlin Chain has already made M-BTC available on various permissionless blockchains, including Ethereum and Solana. The addition of Sui further diversifies its multi-chain presence.

With this move, Merlin positions itself as a key enabler of Bitcoin-native liquidity in fast-growing DeFi environments, empowering both individual and institutional participants to engage in decentralized finance with ease.

Expanding Accessibility and User Experience

One of the core goals of this integration is to improve the onboarding experience for new users. Traditionally, interacting with DeFi protocols across multiple chains has required the use of bridges and token swaps, often involving technical complexity and security risks. Merlin Chain addresses this by simplifying the process.

With the M-BTC on Sui, users can mint, manage, stake, and trade their Bitcoin-pegged assets through a single interface, reducing friction and increasing participation.

“We’re focused on creating a seamless, rewarding DeFi experience for everyone — not just crypto natives,” said the Merlin team. “By integrating with Sui, we’re bringing ease-of-use and accessibility to the forefront of Bitcoin DeFi.”

No Need for Cross-Chain Complexity

By eliminating the need for users to bridge tokens across multiple platforms, the Sui integration significantly reduces user effort and potential transaction risk. Users can remain on one chain — Sui — and still gain access to DeFi yield opportunities powered by Bitcoin assets.

This approach aligns with Merlin’s broader mission of promoting cross-chain liquidity while offering a native DeFi experience on networks optimized for performance. The deployment on Sui represents a meaningful milestone in that vision.

Targeting Both Institutional and Retail Markets

While retail users stand to benefit from easier access and lower fees, the partnership also caters to institutional players seeking efficient capital deployment. M-BTC on Sui presents a new avenue for institutions to interact with DeFi protocols without compromising on security, compliance, or operational efficiency.

The integration provides a robust infrastructure layer that can support high-volume liquidity movements, staking operations, and advanced financial strategies.