Hashi Protocol Targets Bitcoin's Idle $1 Trillion Market Cap
The Hashi Protocol went live on the Sui Network on March 19, 2026, introducing a novel method for integrating Bitcoin into decentralized finance. The protocol aims to solve a major challenge in the digital asset space: unlocking Bitcoin's more than $1 trillion market value for productive use. Currently, less than 0.5% of all Bitcoin is active in DeFi ecosystems, largely due to the security risks and centralization associated with wrapped tokens like wBTC.
Hashi bypasses these issues by allowing Bitcoin to be used as native collateral on Sui without wrapping or third-party custody. This enables Bitcoin holders to borrow stablecoins and access liquidity from Sui's DeFi applications, such as AlphaLend, Navi, and Scallop, without selling their core asset. The system is designed to automatically move assets between blockchains, creating a more seamless user experience for both institutional and self-custody users.
Institutions Like BitGo and FalconX Back Wrapper-less Lending
Hashi's launch is supported by a strong coalition of established crypto-native institutions. Custody providers BitGo and Ledger, trading firm FalconX, and digital asset platform Bullish are among the key partners committed to providing liquidity and infrastructure for the protocol. This institutional support is critical for building trust and ensuring the platform can operate at scale from its inception.
The initial primary feature is collateralized lending, allowing users to borrow stablecoins against their Bitcoin. Erebor Bank plans to assist with deposits and withdrawals, streamlining the on-ramp and off-ramp process for capital. This design directly addresses the needs of large investors who require clear risk controls and regulated-feeling financial tools.
Insured Collateral and Transparent Oracles Attract Institutions
To meet institutional standards, Hashi has built a framework focused on security and transparency. The protocol uses price data from CF Benchmarks, delivered via oracle networks, to ensure lending and collateral values are accurate and verifiable in real-time. For added security, insurance provider Soter Insure will offer policies to protect the Bitcoin collateral against risks like theft or loss.
Looking ahead, the protocol plans to expand its financial services. Investment firm Wave Digital intends to use Hashi to issue Bitcoin-backed bonds, which could accelerate capital formation and settlement for institutions. By integrating with audited smart contracts and providing clear, real-time data on borrower health and interest rates, Hashi is positioning itself as a core piece of infrastructure for the next generation of Bitcoin-powered finance.
Hashi can unlock trillions in Bitcoin liquidity.
— Adeniyi Abiodun, Mysten Labs co-founder.
Edgen Crypto·Mar 20 2026, 00:13
