Sui Foundation launches Hashi testnet, enabling Bitcoin to serve as collateral for onchain lending without wrapping, backed by 25+ institutional partners including BitGo and Ledger.
DeFi & Yields ·
The Sui Foundation and Mysten Labs have introduced Hashi, a testnet protocol that permits Bitcoin to function as collateral for onchain lending arrangements without requiring wrapping or bridging mechanisms. More than 25 institutional partners are participating in testing, among them BitGo, FalconX, and Ledger.
The protocol addresses a structural inefficiency in decentralized finance by enabling direct use of Bitcoin as loan backing. Current approaches typically require converting Bitcoin into wrapped representations or moving it across chain boundaries—steps that introduce friction and counterparty risk. Hashi's design seeks to streamline this process while maintaining security standards for institutional participants.
The initiative targets the $1.4 trillion Bitcoin market and aims to broaden institutional engagement with onchain lending. Key questions remain around Hashi's path from testnet to mainnet deployment, the specific technical safeguards governing collateral management, and adoption rates once live trading begins.