A new Bitcoin finance protocol, Hashi, is launching on the Sui blockchain with support from major crypto firms including BitGo, Bullish, and FalconX. The platform enables Bitcoin holders to earn yield through onchain lending and borrowing using native BTC-no wrapped or synthetic assets required.
Developed primarily by Mysten Labs, Hashi aims to solve structural barriers that have limited Bitcoin’s use in decentralized finance. Currently, only about 0.22% of Bitcoin’s supply-roughly $3.07 billion-is deployed in DeFi. The protocol uses onchain verification and smart contracts for transparent, automated collateral management, replacing opaque ‘trust me’ models.
The system relies on multi-party computation custody, formal verification, and plans for insurance coverage on BTC collateral. It also includes future plans for issuing Bitcoin-backed bonds. A devnet is expected soon, with mainnet launch later this year.
This move follows a broader recovery in Bitcoin-backed lending after the 2022 collapse of BlockFi and Celsius. Regulators are now recognizing digital assets in financial assessments, and firms like Coinbase, Ledn, and Strike have launched non-rehypothecated loan products.