Sui launches Hashi testnet for Bitcoin-backed loans

The Sui Foundation and Mysten Labs launched the Hashi testnet on July 22. Hashi lets bitcoin serve as collateral for onchain loans while keeping BTC on the Bitcoin network rather than re-minting or moving it to another chain.

Deposits are secured with a 2-of-2 multisig that requires signatures from the protocol’s multi-party computation validators and a separate Guardian Layer, a configurable risk-management system designed to slow or block suspicious withdrawals. Loan terms and collateral positions are recorded onchain so lenders can see how much bitcoin backs a loan.

Mysten Labs introduced Hashi at devnet in March, and the Sui Foundation supported the testnet rollout. Adeniyi Abiodun, Mysten Labs co-founder and chief product officer, described Hashi as “the infrastructure to build those markets onchain with the security, transparency, and programmability institutions have been waiting for” and noted “Bitcoin is no different” from other major assets for credit markets.

More than 25 institutional partners are testing lending and credit applications on the testnet. Participants include custody provider Bitgo, trading firms Cumberland and FalconX, hardware wallet maker Ledger, infrastructure provider Blockdaemon, exchange Bullish, and Sui-native lending platforms Navi and Scallop. Wave Digital Assets committed to a three-year plan to tokenize bitcoin-yield-bearing bonds on Sui once Hashi reaches mainnet.

Hashi is designed to avoid risks tied to wrapped bitcoin and cross-chain bridges, which have resulted in losses in decentralized finance. In April 2026, Volo Protocol lost $3.5 million after an attacker compromised a vault administrator’s key and withdrew roughly $2.1 million in wrapped bitcoin from multiple vaults. Hashi’s multisig and Guardian Layer structure aims to make single-key custodial failures harder to execute.

Legal analysis cited by Sui says Hashi’s deposit and redemption flows are structured to avoid triggering taxable events under U.S. tax law, a factor institutions consider when moving bitcoin into credit products.

Hashi has no announced mainnet date. The current testnet phase is for builders and institutional partners to integrate lending, borrowing and credit products before live assets are used. Sui also supports other bitcoin liquidity approaches such as Threshold’s tBTC and the Sui Bridge, which enable different ways to use bitcoin on the Sui network.