Hashi, a Bitcoin finance primitive developed by Mysten Labs on the Sui blockchain, enables BTC to be used as programmable collateral without moving it from its native chain. Secured by a 2-of-2 multisig requiring signatures from an MPC validator and a Guardian Layer, the system avoids re-minting wrappers like wBTC. Testnet has seen over 2 million deposits from 25 partners including BitGo, Cumberland, and FalconX, targeting BTC-backed lending and stablecoin issuance from the $1.4 trillion idle Bitcoin supply. Mainnet launch is the next milestone, with risks around MPC security, oracle reliability, and regulatory clarity.
Hashi is designed to unlock productive use of the $1.4 trillion in Bitcoin that largely sits idle in cold storage. Deposited assets remain on the Bitcoin chain while loan terms and collateral positions are managed via Move smart contracts on Sui. A legal analysis performed by Fenwick West, as referenced by Sui, indicates that deposit and redemption structures are designed to avoid taxable events under U.S. law.
The devnet launched in March, followed by a global testnet on July 22 that has recorded over 2 million test deposits. More than 25 institutions are testing the system, including BitGo, Cumberland, FalconX, Bullish, SwissBorg, Fluid, Ledger, and Blockdaemon. The model focuses on BTC-backed lending and stablecoin issuance, with yield generated from interest spreads rather than token inflation.
If the Guardian Layer withstands adversarial testing, Hashi could become foundational infrastructure for Sui DeFi protocols such as Scallop, Navi, and Suilend. Remaining risks include MPC security, oracle dependency via CF Benchmarks, and the need for regulatory clarity. The primitive offers a credible path to turning Bitcoin into productive collateral, as stated by Binance Academy.
