Sui’s Hashi Launches With $500M to Turn Bitcoin Into Productive DeFi Collateral Markets

Key Takeaways:

• With more than $500 million in locked-in tokens, Hashi will launch its phased mainnet launch.
• The protocol enables users to utilize their native Bitcoin with hBTC on Sui.
• Anchorage Digital joins over 20 launch partners to take the institutional adoption of Bitcoin-backed finance one step further.

User Score

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Sui is preparing to launch Hashi mainnet with more than $500 million already committed, giving its Bitcoin finance infrastructure significant liquidity from day one.

This network will enable institutions and crypto investors to transact BTC loans, borrow from BTC, and perform other financial strategies without the need of offering its Bitcoin.

Later this month, Hashi will start a gradual launch of the mainnet, with over 20 crypto businesses supporting the effort.

Native BTC can be used as collateral in Sui applications, thanks to the infrastructure. During Bitcoin’s Hashi, hBTC is issued when BTC is deposited to Sui.

They may then deploy hBTC throughout lending markets, credit products, the automated vaults, structured products and other onchain strategies. The hBTC are burnt when leaving the system and the corresponding native Bitcoin is released back to the Bitcoin network.

The first $500 million pledge is for the purpose of providing liquidity for those venues, not for Hashi to acquire from scratch; otherwise, they’d be unlikely to see usage.

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Whereas, Hashi’s design focuses on how to keep the underlying BTC secure on Bitcoin and how smart contracts ensure secure usage of BTC as a collateral for other projects.

In addition, the project has several additional security features around Bitcoin withdrawals: MPC infrastructure, Sui smart contracts and a guardian mechanism which is supposed to offer an additional layer of authentication before the collateral leaves the system.

Third parties will create financial products standing on top of the infrastructure which will be developed by Hashi, the original creator of Sui.

New routes to Bitcoin exposure are here with Anchorage Digital as a launch partner, adding institutions that do not depend on traditional DeFi access.

One path involves the Atlas infrastructure for tri-party collateral arrangements offered to firms looking for qualified-custody compliance needs.

A second path will enable institutions to get connected via the institutional self-custody wallet, called Porto, by Anchorage Digital. The city also intends to provide liquidity for stablecoins to Hashi, which will increase the capital available for lending and financing strategies that operate on the back of BTC.

Hashi is backed by financial technology providers like BitGo, Bullish, Cumberland, FalconX and Ledger, and others such as Aftermath, Concrete and Fluid are anticipated to host vaults.

The overarching goal is to address the vast quantity of institutional and public company-held BTC that may be prohibitively inaccessible or just sitting in wallets idle.

Hashi wants to provide them with the services of being collateral for the credit market, for stablecoin borrowing, and for real world asset strategies, which will not require a further sale of BTC by the holders.

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