Bitcoin market collateral protocol Hashi launches on testnet with a market cap of $1.4 trillion, over 25 institutions participate in testing

According to Odaily, Sui Foundation and Mysten Labs launched the Hashi Bitcoin collateral protocol testnet on July 22. Hashi enables BTC to provide collateral support for on-chain lending and credit markets without wrapping it into synthetic tokens or bridging across different chains.

Hashi keeps Bitcoin on the Bitcoin network, with deposits protected by a 2-of-2 multisignature mechanism, requiring simultaneous signatures from both Hashi multi-party computation validators and an independent Guardian Layer. Loan terms and collateral positions are recorded on-chain for lenders to assess collateral support.

More than 25 institutional partners are currently testing Hashi’s lending and credit applications, including Bitgo, Cumberland, FalconX, Ledger, Blockdaemon, Bullish, as well as Sui ecosystem lending platforms Navi and Scallop. Wave Digital Assets has committed to advancing a three-year Bitcoin yield bond tokenization plan on Sui after Hashi goes live on mainnet.

The mainnet launch date for Hashi has not yet been announced. In March, Sui previously unveiled the Hashi devnet phase, positioning the protocol as a solution to improve capital efficiency for the approximately $1.4 trillion Bitcoin market.