Hashi protocol, focusing on the Sui blockchain, has officially launched, aiming to provide Bitcoin holders with a new avenue to generate yield on native BTC. The protocol fills a relatively small niche in the broader Bitcoin market through its on-chain lending mechanism. The primary development force behind the Hashi project comes from Mysten Labs, a core contributor to the Sui blockchain.
The Hashi system introduces on-chain verification and programmatic collateral management mechanisms, designed to offer better adaptability for institutional investors participating in BTC lending. A key highlight of the protocol is its allowance for native Bitcoin to be directly used in on-chain services, without the need for wrapping or synthetic processing. Its core advantages lie in providing high transparency and automated collateral control, laying the foundation for scaled development.
This launch has garnered participation commitments from several custody and infrastructure providers, including Ledger and Cubist. DeFi News protocols within the Sui ecosystem will also gradually support lending, custody, and collateral management functions on the platform following its launch.
Hashi plans to integrate Multi-Party Computation (MPC) custody technology with Sui smart contracts to jointly manage collateral and facilitate lending operations. Prior to its official launch, Hashi will undergo rigorous security audits and formal verification. Furthermore, the protocol is considering introducing value-added services such as Bitcoin collateral insurance and the issuance of Bitcoin-backed bonds. Currently, the developer network (devnet) is nearing its launch, with the mainnet expected to roll out later this year.
Bitcoin Collateral Lending Market Shows Signs of Recovery Post-FTX Event
In 2022, the collapse of platforms like BlockFi and Celsius Network led to a significant contraction in Bitcoin collateral lending. During this period, over-collateralization and opaque risk management resulted in substantial user losses, while the repeated use of customer collateral amplified systemic risks, severely damaging market confidence in crypto lending platforms.
Recently, interest in Bitcoin collateral lending is gradually rebounding as regulators and industry participants evaluate frameworks for transparency, improved collateral management, and reduced counterparty risk.
Notably, in June of this year, the U.S. Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to assess whether cryptocurrencies could be used as reserves by borrowers in mortgage risk assessments. This move indicates a gradual recognition at the regulatory level of the value of digital assets like Bitcoin, without mandating their conversion to USD.