The Sui Foundation has announced the launch of Hashi, a trustless Bitcoin financial infrastructure built on the Sui blockchain. The initiative is backed by over 30 industry heavyweights, including BitGo, Bullish, FalconX, Ledger, and Fordefi. Hashi aims to enable native Bitcoin applications in decentralized finance (DeFi News) by integrating multi-party computation (MPC) security with Sui's smart contracts, eliminating the need for wrapped or synthetic Bitcoin tokens.
Hashi's Mechanism: Replacing Bitcoin Wrapping with MPC Security
Hashi establishes a 'trustless' Bitcoin financial layer by combining multi-party computation with Sui's Move language smart contracts. Unlike Bitcoin wrapping products that rely on centralized custodians, Hashi's MPC model distributes key management among multiple parties, mitigating single points of failure.
"We are replacing 'trust me' workarounds with on-chain verification," stated Adeniyi Abiodun, Co-founder and Chief Product Officer at Mysten Labs. This design directly addresses the failures of centralized lenders like BlockFi and Celsius in 2022, which led to billions in losses due to opaque rehypothecation of customer Bitcoin.
The protocol allows Bitcoin holders to borrow stablecoins against their Bitcoin without converting it into wrapped or synthetic tokens. Initial supported stablecoins include Sui Dollar, eSui Dollar, FDUSD, and USDC. Additionally, it supports Matrixdock's XAUm, a gold-backed token, offering users hedging strategies beyond USD-denominated assets.
Institutional Partner Ecosystem at Launch
Hashi's launch partners span custody, lending, treasury, insurance, and compliance consulting. Companies such as BitGo, Bullish, Erebor Bank, FalconX, Fordefi, and Ledger provide custody and infrastructure support. Lending protocols like AlphaLend, Navi, Scallop, and Suilend will integrate Hashi to facilitate Bitcoin-collateralized lending.
Treasury platforms including Bluefin, Concrete, and Inveniam Capital will handle structured products. Soter Insure offers Bitcoin-denominated insurance, a rare solution allowing institutions to hedge protocol risk using Bitcoin rather than USD.
Wave Digital Assets, an SEC-registered investment advisor, is also involved as a bond partner. This demonstrates Hashi's commitment to compliance from inception, aiming to meet institutional regulatory requirements from day one rather than retrofitting compliance post-launch.
Hashi's Position in Bitcoin DeFi News
Sui enters a competitive landscape. Bitcoin DeFi News ecosystems like Stacks, Merlin Chain, and Babylon's staking infrastructure have been building native Bitcoin financial infrastructure for over a year. Hashi's differentiator lies in its combination of MPC-based security and Sui's Move programming language, which offers formal verification capabilities not found in Solidity-based competitors.
With Bitcoin's current DeFi News utilization at a mere 0.22%, the opportunity is significant, yet challenging. Bitcoin holders have historically been cautious about deploying BTC into DeFi News, a sentiment amplified by the 2022 centralized lending collapses. Hashi aims to rebuild market confidence through its on-chain transparency and multi-party audit processes.