Key Takeaways:
Hashi's testnet is now live on Sui, giving developers and institutions their first opportunity to use native Bitcoin as DeFi collateral through a new Guardian Layer security mechanism.
Sui-based infrastructure provider Hashi launched its testnet on July 22, 2026, enabling builders to mint hBTC — a tokenized representation of native Bitcoin — and deploy it across lending, borrowing, and credit markets on the Sui blockchain. The testnet marks the first time institutions can stress-test Bitcoin-backed financial applications ahead of a mainnet launch, according to a statement from the Sui Foundation.
"Every major asset class eventually develops deep credit, lending, and liquidity markets," said Adeniyi Abiodun, co-founder and chief product officer of Mysten Labs, the original contributor to Sui. "Bitcoin is no different. Hashi is giving developers the infrastructure to build those markets onchain with the security, transparency, and programmability institutions have been waiting for."
The protocol introduces the Guardian Layer, a defense-in-depth security architecture that secures all Bitcoin collateral — or UTXOs — with a 2-of-2 multisig requiring both an MPC signature from Hashi validators and a signature from the guardian. This creates configurable safeguards that can slow or prevent potentially malicious activity before collateral leaves the system, addressing a key institutional concern about moving native BTC into programmable credit markets.
More than $1 trillion in Bitcoin remains largely dormant, with institutions lacking the infrastructure to safely deploy it into transparent, onchain credit markets, the foundation said. Fenwick, a law firm specializing in digital assets, concluded that Hashi's deposit and redemption mechanics should not constitute taxable events under U.S. tax law — removing a barrier that had kept many institutional holders on the sidelines.
25+ launch partners onboard
The testnet ecosystem includes more than 25 partners spanning custody, lending, liquidity, and asset management. Custody providers BitGo, Blockdaemon, Cobo, Fordefi, and Ledger are integrated, while liquidity comes from Bullish, Cumberland, OCC-chartered bank Erebor, and FalconX. DeFi lending protocols AlphaLend, Bluefin, Scallop, Suilend, Navi, and Fluid are building on Hashi from day one.
Wave Digital Assets, an SEC-registered investment adviser, has committed to three years of best efforts to prioritize the tokenization of Bitcoin-yield-bearing bond products on Sui using Hashi, reinforcing institutional demand for programmable Bitcoin fixed-income markets.
What the Guardian Layer changes
The Guardian Layer is designed to help institutions manage operational risk while maintaining the transparency of onchain markets. All BTC collateral movement requires dual signatures — one from Hashi's validator set via MPC and one from the guardian — creating an additional layer of protection against malicious activity. This complements Hashi's broader architecture, which includes automated collateral management, verifiable loan terms, and full onchain visibility into collateral health.
Security auditors Asymptotic, Certora, and OtterSec have reviewed the protocol's smart contracts, while CF Benchmarks provides pricing data via oracles and Soter Insure offers native, Bitcoin-denominated institutional insurance.
Developer SDK documentation and integration guides are available at sui.io/hashi. The mainnet launch timeline has not yet been disclosed.
This article is for informational purposes only and does not constitute investment advice.
