TL;DR
- Sui will launch Hashi, an institutional protocol that will allow Bitcoin holders to use BTC as collateral for loans without moving their coins off the Bitcoin blockchain.
- The project has secured $500 million in capital commitments from more than 20 partners. Its mainnet rollout will begin in phases throughout October.
- Hashi will use multisignature vaults on Bitcoin and issue hBTC on Sui to support lending and other financial activities.
Sui announced the launch of Hashi, a protocol designed to allow institutions and businesses to use Bitcoin as loan collateral without moving their BTC to another blockchain.
The initiative has already secured $500 million in capital commitments from more than 20 industry partners. These commitments do not yet represent actual deposits, but the capital is intended to provide liquidity once the protocol begins operating. Its mainnet deployment will take place in phases throughout October.
Sui Aims to Expand Institutional Access to Bitcoin-Backed Loans
According to Sui’s estimates, approximately $1 trillion in Bitcoin remains unused in financial applications. Hashi aims to offer holders an alternative to access financing without selling their assets.
Participants include Anchorage Digital, which will provide stablecoin liquidity from launch. Its CEO, Nathan McCauley, noted that publicly traded companies and institutions hold large amounts of Bitcoin, but existing tools have limited their ability to use those holdings as capital.
The protocol is designed for institutional lending, corporate financing, and other applications that require verifiable collateral.
How Hashi Will Work
Users will deposit their BTC into a custody address directly on the Bitcoin blockchain. The funds will be secured by a 2-of-2 multisignature system, requiring cryptographic authorization from both Hashi validators.
An independent monitoring layer will oversee collateral movements to detect suspicious activity.
For each deposit, Hashi will issue hBTC on Sui, a token backed by the locked Bitcoin. Users will be able to use it in lending applications, credit markets, and transactions involving real-world assets.
To recover their BTC, users must burn the corresponding hBTC. This process will allow the original Bitcoin to be released on its native network.
The Sui protocol has also undergone security reviews. Certora formally verified its smart contracts, while CommonPrefix examined the cryptography used in its multi-party computation (MPC) system.
