Hashi, a new Bitcoin-based lending protocol developed primarily by Mysten Labs, is set to launch on the Sui blockchain later this year. BitGo, Bullish, and FalconX have committed to early participation, alongside custodians Ledger and Cubist.
The protocol allows Bitcoin holders to borrow stablecoins against their BTC holdings while earning yield through onchain lending. It uses multi-party computation custody and smart contracts to manage collateral, with audits and formal verification planned before launch.
A Sui Foundation spokesperson said Hashi addresses structural barriers limiting Bitcoin’s role in decentralized finance, replacing intermediary-dependent systems with onchain verification and programmatic collateral management. Currently, only about 0.22% of Bitcoin’s supply, roughly $3.07 billion, is deployed in DeFi protocols.
Planned features include insurance coverage for BTC collateral and Bitcoin-backed bond issuance. A devnet is expected soon, with a mainnet launch targeted for later in 2025.
Originally reported by CoinTelegraph.
