New tech to power bitcoin lending is set to debut with $500 million in commitments
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Layer-1 blockchain Sui is launching Hashi, an institutional protocol that enables Bitcoin holders to use BTC as collateral for lending without transferring it off the Bitcoin network. The system debuts with $500 million in capital commitments from over 20 industry partners to ensure deep liquidity at launch. Hashi’s mainnet will roll out in phases starting later this month.
Why it matters
The source states this development could unlock a large pool of roughly $1 trillion in dormant institutional Bitcoin by providing a compliant, transparent ecosystem for Bitcoin-backed decentralized finance (DeFi). This shift allows institutions to deploy Bitcoin capital beyond speculative trading, financing real-world expenses such as tuition, real estate, and working capital.
Key context
Institutional Bitcoin holders have lacked technology allowing secure, compliant use of their BTC in DeFi without moving coins off-chain. Hashi addresses this by locking BTC in a multisig vault directly on the Bitcoin blockchain and issuing equivalent hBTC tokens on Sui for lending and borrowing. The protocol also features rigorous security vetting by Certora and CommonPrefix.
Key numbers and entities
Sui blockchain, Hashi protocol, $500 million in capital commitments from over 20 partners, $1 trillion estimated dormant Bitcoin, Adeniyi Abiodun (Co-Founder of Mysten Labs), Nathan McCauley (CEO of Anchorage Digital), Certora and CommonPrefix (security firms).
What remains unclear
The source does not specify the exact timeline beyond "later this month" for the full mainnet rollout or the specific terms governing the collateralized lending. Details on the user onboarding process and fee structures are also not provided.