The Sui Foundation and Mysten Labs launch the Hashi testnet, enabling Bitcoin‑collateralized DeFi loans without wrapping BTC, aiming for a mainnet rollout.
The Sui Foundation and its development arm Mysten Labs have launched the Hashi testnet, a pioneering platform that lets users lock Bitcoin as collateral for decentralized finance (DeFi) loans without the need to wrap the native asset.
How Hashi Works
Hashi leverages Sui’s Move‑based smart‑contract language to create a native bridge that locks BTC on the Bitcoin blockchain while issuing a corresponding debt position on Sui. This design eliminates the trust‑less wrapping step that traditional cross‑chain solutions require, reducing latency and potential attack vectors.
Users can borrow Sui‑based stablecoins or other assets by depositing Bitcoin as collateral, with the system automatically managing liquidation thresholds and interest rates through on‑chain logic.
Targeting Bitcoin’s Massive Market
With Bitcoin’s market capitalization hovering around $1.4 trillion, the Hashi testnet aims to capture a slice of that liquidity by offering DeFi participants a direct, non‑wrapped pathway to leverage their BTC holdings.
By avoiding wrapped tokens, Hashi hopes to attract institutional players wary of custodial risks, while also providing retail users a more straightforward entry into Bitcoin‑backed lending.
Roadmap to Mainnet
The testnet phase will run for several weeks, during which developers and early adopters can experiment with loan creation, repayment, and liquidation processes. Feedback will inform parameter tweaks before a planned mainnet launch later this year.
- Deploy core bridge contracts on Sui
- Integrate Bitcoin full‑node verification
- Open sandbox for developers
- Gather community feedback
Mysten Labs emphasizes that security audits are already underway, and multiple third‑party firms have been engaged to review the bridge code before mainnet activation.
Hashi represents a new paradigm for Bitcoin‑collateralized DeFi, removing the friction of token wrapping while preserving the security guarantees of both chains.
If successful, the platform could pave the way for a broader ecosystem of Bitcoin‑backed financial products on Sui, ranging from leveraged trading to synthetic asset issuance.
For more details, see the original coverage on Bitcoin.com.