The Sui Foundation has launched Hashi, a trustless Bitcoin finance primitive built on the Sui blockchain, backed by more than 30 institutional partners including BitGo, Bullish, FalconX, Ledger, and Fordefi. The protocol uses multi-party computation security combined with Sui smart contracts to enable native BTC utilization in DeFi without wrapping or synthetic alternatives.
Hashi targets a massive gap in Bitcoin’s capital deployment. Despite Bitcoin’s $1.4 trillion market cap, only 0.22% of BTC, roughly $3.07 billion, is currently deployed in DeFi protocols. The primitive is designed to unlock idle Bitcoin capital by automating cross-chain asset movement and collateral lifecycle management through on-chain verification rather than centralized intermediaries.
The launch arrives during a period of broader market turbulence, with the Fear & Greed Index sitting at 11, deep in “Extreme Fear” territory. That institutions are committing capital and infrastructure to a new Bitcoin DeFi primitive while retail sentiment collapses signals a counter-cyclical bet on BTC-denominated finance.
How Hashi Works: MPC Security Without Wrapping
Hashi combines multi-party computation with Sui Move-native smart contracts to create what the team calls a trustless Bitcoin finance layer. Unlike wrapped Bitcoin products that rely on centralized custodians, Hashi’s MPC model distributes key management across multiple parties, reducing single points of failure.
Mysten Labs co-founder and CPO Adeniyi Abiodun framed the approach directly: “We are replacing ‘trust me’ workarounds with onchain verification.” The design is a deliberate response to the 2022 collapses of BlockFi and Celsius, where opaque rehypothecation of customer Bitcoin led to billions in losses.
The protocol enables BTC holders to lend against stablecoins without converting their Bitcoin into a wrapped or synthetic token. Supported stablecoins at launch include Sui Dollar, eSui Dollar, FDUSD, and USDC, alongside Matrixdock’s XAUm, a gold-backed token that opens hedging strategies beyond USD-denominated pairs.
Three independent audit firms, Asymptotic, Certora, and OtterSec, are conducting formal verification of Hashi’s smart contracts. That triple-audit approach stands in contrast to earlier-generation lending platforms that often launched with a single audit or none at all, a distinction that matters for institutions evaluating counterparty risk in volatile markets.
Institutional Partner Ecosystem at Launch
The partner roster spans custody, lending, vaults, insurance, and regulated advisory. BitGo, Bullish, Erebor Bank, FalconX, Fordefi, and Ledger provide custody and infrastructure. Lending protocols AlphaLend, Navi, Scallop, and Suilend will integrate Hashi for BTC-collateralized borrowing.
Vault platforms Bluefin, Concrete, and Inveniam Capital handle structured products. Soter Insure is providing Bitcoin-denominated coverage, an unusual offering that lets institutions hedge protocol risk in BTC terms rather than USD.
Wave Digital Assets, an SEC-registered investment advisor, is participating as a bonds partner. That involvement signals a compliance-first posture for the protocol, positioning Hashi to meet institutional regulatory requirements from day one rather than retrofitting compliance after launch.
The breadth of partners, from DeFi-native lending protocols to regulated financial advisors, suggests Hashi is targeting both crypto-native institutions and traditional finance entrants simultaneously.
Where Hashi Fits in the Bitcoin DeFi Landscape
Sui is entering a crowded field. Competing Bitcoin DeFi ecosystems including Stacks, Merlin Chain, and Babylon’s staking primitive have been building Bitcoin-native financial infrastructure for over a year. What differentiates Hashi is the combination of MPC-based security with Sui’s Move programming language, which offers formal verification properties that Solidity-based competitors lack.
The 0.22% DeFi utilization rate for Bitcoin represents both the opportunity and the challenge. Bitcoin holders have historically been reluctant to deploy BTC into DeFi, a reluctance deepened by the CeFi lending failures of 2022. Hashi’s on-chain transparency and multi-firm audit process are designed to rebuild that trust.
Hashi’s devnet is launching imminently, with mainnet planned for later in 2026. SUI traded at $0.97 at the time of the announcement, while BTC held steady near $70,625. The protocol has not disclosed total value locked targets or specific funding amounts raised by the founding team.
For Bitcoin holders watching the institutional commitment unfold against a backdrop of extreme market fear, the concrete milestone to track is whether Hashi’s mainnet launch delivers the on-chain verification it promises, or whether the gap between devnet ambition and production reality proves as wide as it has for previous Bitcoin DeFi entrants.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
