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The Sui Network is planning to introduce privacy transactions on its layer-1 blockchain by 2026 to address growing concerns around quantum computing and regulatory scrutiny. The network’s design aims to allow confidential, regulation-compliant on-chain payments without requiring users to opt in. Only the sender and receiver will be able to see transaction details, creating a system of full confidentiality.
This initiative reflects broader industry concerns about quantum computing. Cryptography underpinning Bitcoin and other networks could be threatened by future quantum computers, making proactive privacy measures increasingly relevant.
How Does Quantum Computing Affect Sui and Blockchain Privacy?
Quantum computing poses potential risks to traditional cryptography. Networks like Bitcoin and Ethereum rely on cryptographic signatures that could be vulnerable to future quantum attacks. Sui’s privacy-first design mitigates exposure through:
- Built-in privacy primitives that conceal transaction details
- Protocol-level confidentiality that reduces reliance on external privacy layers
- Support for regulatory compliance while protecting sensitive financial data
By addressing quantum risks early, Sui prepares for both technological advances and regulatory demands.
How Will Sui Network Implement Privacy Transactions?
Mysten Labs co-founder and Chief Product Officer Adeniyi Abiodun confirmed that Sui plans to use inherent privacy primitives at the protocol level.
Breaking 💥
— Adeniyi.sui (@EmanAbio) December 29, 2025
Private transactions are coming to @SuiNetwork in 2026.
More on this soon!! pic.twitter.com/TupEqKz67H
These primitives were first developed two to three years ago and form the foundation for a more private blockchain environment.
Key features include:
- Protocol-Level Privacy: Privacy is built into the blockchain, not layered on top, which reduces complexity for developers.
- Support for DeFi and App Development: Developers can build applications and financial products without compromising transaction confidentiality.
- High Throughput and Low Fees: Privacy features will not affect Sui’s existing performance benchmarks.
By embedding privacy at the protocol level, Sui aims to prevent exposure of sensitive transaction data while remaining compliant with potential regulations.
Why Is Privacy Important for Sui?
Privacy on blockchains is increasingly relevant for several reasons:
- Quantum Computing Risks: Advances in quantum computing could eventually break current cryptographic standards. Private transactions help mitigate exposure.
- Regulatory Compliance: Enterprises and financial institutions prefer networks where sensitive transaction details are protected while adhering to regulations.
- Institutional Adoption: Confidential transactions attract institutional players who require robust privacy controls for on-chain operations.
Sui’s approach positions the network to accommodate both retail users and institutions seeking secure blockchain infrastructure.
What Role Do Stablecoins and BTC Finance Play in Sui’s Growth?
Sui’s ecosystem is expanding beyond privacy features into financial infrastructure. By 2025, the network supported multiple stablecoins, including USDC, AUSD, FDUSD, USDY, and the Sui-native suiUSDe. These stablecoins allow seamless on-chain payments and reduce reliance on off-chain financial rails.
BTC-backed assets on Sui also grew significantly. Multiple paths now support Bitcoin integration:
- Institutional and Yield-Focused Use Cases: Lombard’s LBTC enables liquid-staked Bitcoin for lending and trading.
- Exchange-Native Liquidity: OKX’s xBTC facilitates movement of Bitcoin from centralized exchanges to Sui’s DeFi ecosystem.
- Trust-Minimized Representations: Threshold’s tBTC and Stacks’s sBTC increase programmability and network integration.
- Bridging Routes: WBTC via LayerZero ensures continuity for users active across other blockchains.
These developments allow Bitcoin to function as a first-class asset within Sui’s ecosystem, supporting lending, trading, and liquidity applications.
How Does Institutional Participation Look on Sui?
Institutional engagement has deepened through regulated products and partnerships. In 2025, milestones included:
- ETFs and Regulated Products: 21Shares launched a 2x leveraged SUI ETF under the ticker TXXS on Nasdaq. The fund tracks SUI price movements using derivatives like swaps.
- Infrastructure Partnerships: Collaborations with Fireblocks and other providers enhanced operational readiness.
- Real-World Asset Integration: Tokenized investment products, commodities, and yield-bearing instruments expanded Sui’s use cases beyond traditional DeFi.
Leveraged ETFs, while high risk, provide access to SUI through regulated channels, reflecting growing confidence in the network. Coinbase listing SUI in New York further reinforces compliance in strict jurisdictions.
What Has Sui Achieved in Community Engagement and Events?
Sui actively engaged its global community in 2025 with more than 13,000 attendees across 17 events worldwide. Highlights included:
- Sui Basecamp Dubai: Over 2,000 attendees from 90 countries explored Sui’s full tech stack, from app decentralization with Walrus and Seal to financial applications like Bitcoin Finance.
- SuiFest and Community Gatherings: Local communities tested and deployed products, formed partnerships, and interacted with previously unavailable components of the Sui Stack.
These events demonstrate practical usage and growth of Sui’s ecosystem while fostering collaboration and product development.
How Is Sui Supporting Early-Stage BTCfi and Payment Teams?
The Sui Foundation, in collaboration with Walrus and Press Start Capital, ran a four-week fellowship to support founders working on Bitcoin-focused financial applications (BTCfi) and payment solutions.
The fellowship included:
- Three weekly sessions with technical and entrepreneurial guidance
- Workshops on customer development, product-market fit, go-to-market strategies, tokenomics, and fundraising
- Hands-on investor and founder sessions
- Weekly product showcases
- $25,000 initial investment per team and potential follow-on funding
Seven teams joined the 2025 cohort, targeting BTCfi and payments solutions. Sui’s high throughput and support for AI-driven transactions made the network suitable for these use cases.
Conclusion
Sui Network’s focus on privacy by 2026 integrates protocol-level confidentiality with DeFi, BTC-backed assets, and scalable payments. Combined with high throughput, low fees, and institutional engagement, the network provides an operational framework for private, regulation-compliant transactions.
Its strategy addresses quantum computing risks, supports BTC finance, fosters community-driven innovation, and expands financial rail infrastructure.
Resources
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Sui Network on X: Announcements (December, 2025)
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Sui Blog article 2: 21shares Lists 2x Leveraged SUI ETF (TXXS) on Nasdaq
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Sui Blog article 3: Inside the BTCfi & Payments Fellowship on Sui
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Sui Blog article 4: 2025 in Review: Around the World With Sui
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Sui Blog article 5: 2025 in Review: Payments, Bitcoin, and Institutional Adoption on Sui
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Sui Blog article 6: Sui and Fireblocks Set to Deliver a New Era of Institutional Infrastructure
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Report by Crypto Briefing: Coinbase now lists Sui token for New York residents on all platforms
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