A New Era of Bitcoin-Based Finance Begins: Meet Hashi on Sui

Main Takeaways

• Industry leaders, including BitGo, Bullish, Erebor Bank, FalconX, Fordefi, Ledger, are committed to Sui's native, compliant Bitcoin finance solution, Hashi.
• Hashi will allow institutions and retail participants who hold BTC to be able to earn yield on their assets; lend and borrow against their BTC while opening the doors for builders to create new offerings for both institutional and retail customers.
• With devnet launching imminently, Hashi unlocks institutional Bitcoin participation at scale, bringing core financial services like credit origination and enhanced returns into a safe, compliant onchain environment.

Overview

A new standard for institutional Bitcoin credit is arriving with the introduction of Hashi, a decentralized primitive built to unlock capital efficiency for trillions of dollars of idle BTC holdings. Ahead of its full release, Hashi has already secured commitments to build from crypto’s largest institutional players, including BitGo, Bullish, Erebor Bank, FalconX, Ledger, Fordefi and Sui’s key financial protocols, including AlphaLend, Navi, Scallop, and Suilend.

Bitcoin is more than a $1.4T asset, but less than half a percent (0.22%, or $3.07B) is currently utilized in DeFi. While a mass of synthetic Bitcoin products emerged in 2025, they were slow to gain traction with institutions because they lacked transparency on collateral management.

Hashi will launch later this year to fix this with a trustless, smart contract-based primitive on Sui that enables native BTC to be used in onchain financial services, including stablecoin lending, structured products, and automated collateral management. The latest addition to the Sui stack takes an entirely different approach than existing wrapped BTC offerings, giving stronger guarantees to participants and flexibility to transact between the Bitcoin and Sui blockchains, making Hashi well-positioned to act as the foundational building block for a new era in Bitcoin finance. 

Using Hashi

At Hashi’s launch, BTC and stablecoin holders, including clients of BitGo, and self-custody wallet users with Ledger, Blockdaemon, Cobo, Cubist, and Fordefi by Paxos, will be able to seamlessly allocate their BTC into yield-generating opportunities.

Lending will be the primary use case at launch, allowing BTC to be lent or borrowed against stablecoins while Hashi automates its cross-chain asset movement. 

Lastly, builders using Hashi as a primitive are free to innovate other use cases besides lending, including credit origination and enhanced reward-generating opportunities they can offer directly to institutions and retail participants. 

Initial Lender and Borrower Commitments

Leading institutional prime brokerage, FalconX, along with Bullish, an institutionally focused global digital asset platform, and OCC-chartered bank Erebor, have also pledged as participants supplying BTC or stablecoin liquidity for lending on Hashi at mainnet, where stablecoins will play an important role in credit origination. Additionally, Erebor would support with on and off-ramping from Hashi.

At launch, users will be able to originate credit, allowing them to pledge BTC or stablecoins as collateral with full transparency, including verifiable rates, collateral safety, and real-time insights into borrower health. 

CF Benchmarks, the world’s largest cryptocurrency index provider whose indices underpin CME’s suite of digital asset derivatives, will support Hashi by distributing its pricing data through oracle networks alongside other Sui ecosystem partners. 

Cubist’s institutional-grade infrastructure will enable the movement of BTC in and out of Hashi when used as collateral. Additionally, Cubist will serve as an engine to maximize collateral efficiency.

Insurance 

As institutional capital accelerates into decentralized credit markets, native risk mitigation is paramount. Soter Insure, a leading provider of institutional-grade insurance solutions, is pioneering the industry’s first native Bitcoin-denominated insurance products built to secure BTC collateral on Hashi. 

Under Soter’s policy, BTC on Hashi receives in-kind coverage. This provides users with a critical layer of assurance, allowing them to recoup losses in covered scenarios such as theft and loss. 

Crucially, Soter settles both premiums and claim payouts entirely in native Bitcoin. This protects lenders, borrowers, and institutional custodians by ensuring a proper asset-liability match, delivering the peace of mind essential for widespread institutional participation.

Bonds on the Underlying Bitcoin

Wave Digital, a leading SEC-registered investment advisory firm, plans to issue secured, rated bonds collateralized by bitcoin and powered by Hashi. These bonds will give issuers a new vehicle to raise low-cost capital and give institutions yet another regulated access point to closing one of the final gaps for institutional adoption, particularly hedge funds and venture capital, who seek instantaneous bond issuance, trading, and settlement, and also want to leverage stablecoin and Bitcoin holdings.

Native Sui Protocols

Many of Sui’s major protocols, including AlphaLend, Navi, Scallop, and Suilend, will be active on day one, bringing Hashi lending and borrowing access to retail participants and the broader Sui community. 

By pairing a Bitcoin address with a Sui address, Hashi ensures full transparency and verifiability on both blockchains.

“Think of Hashi as the unlock for developers to design solutions opening access to trillions in BTC liquidity,” said Adeniyi Abiodun, Co-Founder and CPO of Mysten Labs, the original contributor to Sui. “Builders finally will have a blank canvas to launch new financial services on top of Hashi, meeting long-term BTC holders’ demands with the transparency benefits of the Sui blockchain.”

Vaults on Hashi

At mainnet, Bluefin and Concrete will operate vault platforms on Hashi, while Inveniam Capital will introduce real-world asset yield strategies powered by stablecoin capital sourced from the protocol. Beyond credit origination, Hashi also enables vaults to give institutional participants a programmatic, compliant place to automate yield strategies and returns for BTC collateral via smart contracts. Crucially, individuals and institutions—from enterprises to Bitcoin miners to asset managers—can access these vaults to turn long-term BTC holdings into working capital, while maintaining full custody and security.

Built for Bitcoin

Hashi uses multi-party computation (MPC) security and Sui smart contracts to bring native BTC to DeFi and automate lifecycle management for lending and other financial services, allowing institutions and retail alike to issue stablecoin loans against Bitcoin collateral without selling the underlying asset.

The infrastructure enables custodians and Sui ecosystem protocols to offer BTC-backed stablecoin loans, using Sui-native assets such as Sui Dollar, eSui Dollar, FDUSD, USDC, and even Matrixdock’s flagship, gold-backed asset, XAUm, directly to their users. Institutions can deploy BTC as collateral with no balance sheet risk, while borrowers gain access to liquidity without selling their Bitcoin to fund operations, issue payroll, underwrite insurance policies, and more. 

Security Audits with Formal Verification

Security is fundamental to institutional trust and the protocol’s long-term success. Hashi’s smart contract design will be audited by the premier security firms Asymptotic, Certora, and OtterSec, ensuring that all collateral and credit terms are fully observable onchain, creating a new standard of trust and auditability for BTC-backed lending. Each smart contract will undergo formal verification, elevating the auditing process with mathematical rigor.

Here’s What Sui’s Partners are Saying:

• AlphaLend Founder and CEO, Raj Murakonda: “Most Bitcoin in DeFi today is wrapped or synthetic, but Hashi will bring native BTC liquidity directly into the Sui ecosystem. By supporting Hashi on AlphaLend, we’re giving users a fast, capital-efficient way to borrow against their BTC, that will transform it into productive capital.”
• Asymptotic CEO, Cosmin Radoi: “With Hashi, Sui is continuing on the path of building with strong correctness foundations. Asymptotic is performing comprehensive formal verification of Hashi's smart contracts, giving institutions strong mathematical evidence that the code matches its intended design.”
• BitGo CEO and Co-founder, Mike Belshe: “Institutional demand for Bitcoin-native financial services is growing, and Hashi presents a new way to connect native BTC on Sui's programmable chain. BitGo remains committed to play a major role in Bitcoin finance."
• Bluefin Co-Founder, Zabi Mohebzada: “Bluefin has been building on Sui since the earliest days of the ecosystem. With Hashi set to unleash a surge of native BTC liquidity to the network, we look forward to leveraging the full stack of our trading infrastructure together with Ember-powered vaults to provide structured avenues for that capital to be deployed productively onchain.”
• Blueprint Finance CEO, Nic Roberts-Huntley: “With Hashi, we can turn idle BTC into a fully integrated yield engine by integrating Concrete, our onchain finance platform. Our platform connects native Bitcoin collateral to onchain lenders and proprietary strategies, returning rewards directly to the borrower in a single flow.”
• Blockdaemon Chief DeFi and Protocol Officer, Demetrios Skalkotos: “Institutions are looking for operational simplicity without compromising on custody, and Hashi gives us the framework to bring native BTC into structured finance directly from our infrastructure stack.”
• Bullish Vice President, Tarun Kapoor: “Bullish was built for institutional market participants, with deep liquidity and a robust compliance framework at its core. We see Hashi as complementary to that vision and are excited to be a launch partner - introducing a transparent framework for BTC-backed lending that offers a capital-efficient way to deploy Bitcoin onchain.”
• Certora CEO Seth Hallem: “The Sui Foundation commitment to security continues with Hashi. Bridging the gap between BTC and DeFi unlocks billions in idle capital, but doing so securely requires mathematical certainty. Certora is excited to support the Foundation in tackling this challenge, and fostering secure innovation.”
• CF Benchmarks CEO Sui Chung: “We’re pleased to support Hashi as a launch partner in this next phase of Bitcoin credit market development. As BTC-backed lending grows through infrastructure like Hashi, our pricing data distributed through oracles will play a critical role in ensuring accurate collateral valuation.”
• Cobo CTO, Dr. Changhao Jiang: “By integrating Hashi into our secure custody infrastructure, we’re expanding our suite of institution-ready Bitcoin solutions, enabling clients to deploy long-term BTC holdings in a capital-efficient way without compromising control, risk standards, or operational rigor.”
• Cubist President, Rohan Chauhan: “Integrating Hashi cements Cubist as the de facto infrastructure layer and developer platform for native Bitcoin on Sui. We are empowering teams with enterprise-grade security, programmable policies and verifiable private execution environments necessary to build safe, compliant and powerful applications.”
• FalconX Global Co-Head of Trading, Joshua Lim: "FalconX has built robust infrastructure across trading and treasury to serve institutional clients across market conditions. Hashi is a complementary addition to that—the ability to engage with native BTC allocation and borrowing in a trustless environment aligns well with how we think about operational efficiency and risk management." 
• First Digital CEO, Vincent Chok: “As an early Sui adopter, we’ve always believed in the network’s potential to support global finance. Hashi represents the next phase of that vision, and we’re excited for FDUSD to play a key role.”
• Fordefi CEO, Josh Schwartz: “Hashi opens powerful new opportunities for our institutional partners to deploy Bitcoin and stablecoins onchain. With Fordefi’s MPC wallet, organizations have the unique opportunity to access these yield-generating opportunities securely while retaining full control over their private keys.” 
• Inveniam Capital Director of DeFi, Peter Gaffney: “Hashi unlocks the value of idle Bitcoin by enabling holders to borrow against it for sovereign-grade private market assets that generate real yield. It’s a step towards expanding DeFi beyond purely crypto and channels stablecoin capital into institutional investment opportunities.”
• Ledger CTO, Charles Guillemet: “The future of finance requires uncompromising security. Sui understands the value of hardware-enforced security and the power of ownership. We’re proud that Ledger support is a key feature for their launch of Hashi, and look forward to continuing to help secure the Sui ecosystem.”
• Matrixdock Head, Eva Meng: “Hashi extends the utility of RWAs on Sui in a powerful way. With XAUm, institutional-grade, physically backed gold, already native to Sui, we’re excited for precious metals to play a part of this market in the future.” 
• NAVI Co-Founder, Elliscope Fang: “We believe BTC’s most prominent use cases start with DeFi lending. With Mysten Labs building the foundation and NAVI offering a full suite of DeFi solutions from lending to vaults, we are excited to make bitcoiners feel at home on Sui."
• OtterSec CEO, Robert Chen: “We’ve worked closely with the Sui ecosystem since its early days. As Hashi brings BTC collateralization to the network, we’re excited to partner with them to provide an independent audit ahead of launch.”
• Scallop Co-Founder and CEO, Kris Lai: “For BTCFi on Sui, we need a native architecture and verifiable security infrastructure, which is why Hashi matters a lot. With the full force of Sui ecosystem protocols committed to Hashi, there will be a solid access point to Bitcoin finance for institutions and retail alike.”
• Soter CEO, Henson Orser: “Hashi brings the transparency and structure needed to underwrite insurance policies with native BTC using decentralized BTC custody for the first time. We can now offer tailored insurance products that protect institutional exposure in Bitcoin finance.”
• Suilend Founder, Rooter: “I've always said Sui outpaces everything else in speed and tools. Now, it’s bringing that same 'no-compromise' quality to Bitcoin. Native beats synthetic every time, and we’re ready to prove it with Hashi.”
• Wave Digital CEO, David Siemer: “Hashi is the missing credit layer that finally makes native Bitcoin usable for institutional fixed-income markets. We’re excited to issue rated bonds on Hashi, where BTC-backed credit can be originated with full onchain verification of collateral, credit health, and borrowing terms.”

Institutions, builders, wallet providers, and custodians interested in learning more about Hashi ahead of devnet, please reach out to [email protected] or visit sui.io/hashi to learn more.

Note: This content is for general educational and informational purposes only and should not be construed or relied upon as an endorsement or recommendation to buy, sell, or hold any asset, investment or financial product and does not constitute financial, legal, or tax advice.