Bitcoin: Hashi Unlocks $1.4T BTC Collateral On Sui

Bitcoin could be the talk of the town but only a fraction of the $1.4 trillion it represents is actually being used in a productive way. Hashi, which is a Bitcoin finance native primitive on Sui, being developed by Mysten Labs, aims to bring the BTC as programmable collateral without moving it from its native chain.

The Significance of Native Collateral

Contrary to wBTC or other synthetic wrappers, Hashi does not re-mint BTC. Deposited assets are secured with a 2-of-2 multisig requiring a signature from an MPC validator and a signature from a separate Guardian Layer, which can either delay or prevent a withdrawal if it is suspicious.

Then the loan terms and the collateral positions are being managed via Move smart contracts on the Sui chain. Based on a legal analysis performed by Fenwick West and referred to by Sui, the deposits and redemptions are structured that taxable events, a major problem for institutions, under the U.S. law can be avoided, as mentioned.

Testnet Traction and Institutional Coalition

Hashi’s devnet launched in March, with global testnet live July 22 and reporting 2M+ test deposits. Over 25 partners are testing, including BitGo, Cumberland, FalconX, Bullish, SwissBorg, Fluid, Ledger, and Blockdaemon.