What to know:
- Hashi lets Bitcoin stay on its own chain, secured by 2-of-2 MPC and Guardian Layer, while Move contracts on Sui track loans to avoid wrapping risks.
- 2M+ deposits, 25 institutions including BitGo, Cumberland, FalconX, targeting BTC lending and stablecoin issuance from $1.4T idle supply.
- Success depends on security testing, oracle reliability, and regulatory clarity, potentially powering Sui DeFi protocols like Scallop and Navi.
Bitcoin could be the talk of the town but only a fraction of the $1.4 trillion it represents is actually being used in a productive way. Hashi, which is a Bitcoin finance native primitive on Sui, being developed by Mysten Labs, aims to bring the BTC as programmable collateral without moving it from its native chain.
The Significance of Native Collateral
Contrary to wBTC or other synthetic wrappers, Hashi does not re-mint BTC. Deposited assets are secured with a 2-of-2 multisig requiring a signature from an MPC validator and a signature from a separate Guardian Layer, which can either delay or prevent a withdrawal if it is suspicious.
Then the loan terms and the collateral positions are being managed via Move smart contracts on the Sui chain. Based on a legal analysis performed by Fenwick West and referred to by Sui, the deposits and redemptions are structured that taxable events, a major problem for institutions, under the U.S. law can be avoided, as mentioned.
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Testnet Traction and Institutional Coalition
Hashi’s devnet launched in March, with global testnet live July 22 and reporting 2M+ test deposits. Over 25 partners are testing, including BitGo, Cumberland, FalconX, Bullish, SwissBorg, Fluid, Ledger, and Blockdaemon.
The model focuses on BTC-backed lending and stablecoin issuance, with yield from interest spreads rather than token inflation.
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What Comes Next for BTCfi
Mainnet is the next milestone. If Guardian Layer holds under adversarial testing, Hashi could become foundational plumbing for Sui DeFi protocols like Scallop, Navi, and Suilend, connecting Bitcoin liquidity to onchain credit markets. Risks remain around MPC security, oracle dependency via CF Benchmarks, and regulatory clarity, but the primitive offers a credible path to productive Bitcoin collateral.
Source: Binance
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