Sui's Hashi Network to Unlock Bitcoin Lending With $500 Million in Commitments

Sui's Hashi Network Secures $500 Million in Commitments for Bitcoin-Backed Finance

Sui, a Layer-1 blockchain, is preparing to launch Hashi, an institutional network designed to let Bitcoin holders use BTC as collateral for lending without moving the underlying assets off the Bitcoin blockchain. The mainnet is scheduled to roll out in phases later this month.

The initiative has secured $500 million in capital commitments from a coalition of more than 20 industry partners. Although these commitments do not represent funds already deposited into the network, they could help Hashi launch with liquidity available to support early lending and borrowing activity.

Adeniyi Abiodun, co-founder and chief product officer of Mysten Labs, the original creator of Sui, said in an official announcement that institutions want to put Bitcoin to work without sacrificing the protections they require.

Hashi Targets $1 Trillion in Idle Bitcoin

Sui estimates that approximately $1 trillion worth of Bitcoin is currently sitting idle. Hashi aims to make a portion of these holdings available for decentralized finance (DeFi), addressing the lack of a compliant and transparent ecosystem through which institutional and corporate holders can deploy native Bitcoin.

For organizations holding Bitcoin on their balance sheets, accessing lending markets without selling their assets could provide another way to obtain liquidity. However, the estimated $1 trillion represents potential capital, not funds already committed to Hashi. Actual participation will depend on institutional confidence, available liquidity and the network's performance.

Bitcoin-Backed Lending Expands Beyond Crypto Trading

Bitcoin-collateralized borrowing is increasingly being used for purposes beyond speculative cryptocurrency trading. Borrowers can use BTC-backed loans to cover expenses such as university tuition, real estate acquisitions and corporate working capital while retaining their Bitcoin holdings.

Nathan McCauley, CEO and co-founder of Anchorage Digital, a launch partner that plans to supply stablecoin liquidity to Hashi, highlighted the technological limitations facing institutional Bitcoin holders.

"Public companies and institutions hold enormous amounts of Bitcoin, but their ability to use that capital has been constrained by the technology available to them," McCauley said.

He added that connecting Anchorage Digital's institutional clients with Hashi represents "a complete paradigm shift."

Anchorage Digital's planned involvement could help connect Bitcoin collateral with stablecoin liquidity, although the amount of funding that will be available at launch has not been disclosed.

How Hashi Uses Bitcoin as Collateral Without Bridging BTC

Rather than transferring Bitcoin through a cross-chain bridge, Hashi allows users to lock their BTC in a vault address directly on the Bitcoin blockchain. The address is secured through a two-of-two multisignature arrangement, which requires cryptographic authorization from both Hashi validators.

The network also includes an independent guardian layer designed to monitor suspicious collateral movements and slow them down, adding another security measure to the collateral-management process.

Once the Bitcoin is locked, Hashi issues hBTC, a digital voucher token on Sui backed directly by the deposited BTC. This token enables users to access financial applications on Sui while the original Bitcoin remains on its native network.

Applications can use hBTC in lending and borrowing services, credit markets and trading involving real-world assets (RWA). The model is designed to make Bitcoin more useful in decentralized finance without requiring users to transfer the underlying asset to another blockchain.

Hashi's Redemption Process and Security Reviews

When users want to withdraw their Bitcoin, they must permanently burn the corresponding hBTC on Sui. This triggers the multisignature mechanism to unlock and return the original BTC to the user's address on the Bitcoin blockchain.

The process links the destruction of the voucher token to the release of the underlying collateral. Its reliability is therefore central to maintaining confidence in the relationship between hBTC and the Bitcoin held in the vault.

Hashi has undergone security assessments intended to address institutional requirements. Security firm Certora formally verified its smart contracts, while CommonPrefix reviewed the cryptography behind its multi-party computation (MPC) protocol.

These reviews examine different parts of the system, but they do not guarantee immunity from every vulnerability or operational failure. Institutional adoption will also depend on the effectiveness of the safeguards, the reliability of withdrawals and the network's performance under real operating conditions.

Hashi's Capital Commitments Could Support Institutional Adoption

Hashi combines native Bitcoin collateral, access to Sui-based financial applications and $500 million in commitments from more than 20 industry partners. Its model seeks to address a key limitation for institutional holders: the difficulty of generating financial utility from Bitcoin without compromising their security requirements.

Keeping the underlying BTC on the Bitcoin blockchain distinguishes Hashi from models that depend on cross-chain bridges. However, the system still relies on the security of its vault, validator authorization, hBTC issuance and redemption mechanisms.

The initiative's success will ultimately depend on whether its capital commitments translate into actual liquidity and sustained borrowing activity. If Hashi can demonstrate reliable collateral management and attract institutional participation, it could expand Bitcoin's role from a largely held asset to collateral supporting credit and other financial services. For now, the planned phased launch and committed capital provide an initial foundation, while real-world adoption will determine how much of the estimated $1 trillion in idle Bitcoin can be put to productive use.