Hashi Protocol Launches on Sui to Support Native Bitcoin Lending and Yield

The collapses of BlockFi and Celsius in 2022 exposed the risks of collateral reuse and a lack of transparency in crypto lending. Mysten Labs developed Hashi in response, allowing native BTC to remain on the Bitcoin blockchain while Sui smart contracts manage collateral and lending, eliminating the need for wrapped assets. Only 0.22% of BTC, worth about $3.07 billion, is currently deployed in DeFi, and institutional participation remains limited.

The Sui Foundation unveiled Hashi on March 19, 2026, with BitGo, Bullish, FalconX and Ledger committing to participate. The protocol supports borrowing stablecoins against BTC collateral. Cumberland, Fluid and SwissBorg joined on June 23, bringing the number of partners to more than 20. A global testnet is scheduled to launch in July, while the mainnet is not yet live and no committed funding amount has been disclosed.