Sui launches Hashi testnet to enable native BTC DeFi collateral

Published: 2026-07-22 18:57:56 |

Sui Network has launched the Hashi testnet, aiming to bring native Bitcoin (BTC) into DeFi as programmable collateral without moving it off the Bitcoin network. Built by Mysten Labs, Hashi lets BTC be used for lending, borrowing, and credit products on Sui, with a new “Guardian Layer” that adds multisig-style checks and continuous monitoring. Hashi locks each BTC collateral unit under a 2-of-2 multisig flow (one signature from Hashi validators and one from a designated guardian), creating an extra checkpoint before large collateral movements. A digital-asset law firm (Fenwick) reviewed deposits and redemptions and said they are not expected to trigger U.S. tax events—an important consideration for institutional users. More than 25 partners are building, including BitGo, Cumberland, Ledger, SwissBorg, and DeFi lenders such as Suilend, Navi, and Bluefin. Wave Digital Assets (an SEC-registered investment adviser) deepened its involvement, committing to three years of work on Bitcoin-yield bond products via Hashi. Traders may watch Sui’s ecosystem build-out and the path toward mainnet. Per CoinGecko, SUI trades around $0.7661 (small daily gain). The market focus is whether Hashi can translate native BTC utility into sustained demand for Sui infrastructure, especially as DeFi credit markets expand.

Bullish

Hashi testnet gives a clear narrative for traders: native BTC DeFi collateral on Sui could unlock new onchain demand for SUI as liquidity and credit products expand. The institutional focus (Wave Digital Assets) plus the “no U.S. tax event” positioning reduces a common friction for custody/credit strategies, which can improve the odds of real capital deployment once mainnet arrives. In the short term, traders may price in SUI ecosystem momentum as integrations land with partners (BitGo, Cumberland, Ledger, etc.). In the longer term, success depends on user adoption and security/performance during testnet-to-mainnet transition; if Guardian Layer and integrations perform smoothly, it could strengthen the bullish thesis similarly to how major bridge/lending infrastructure upgrades historically drove “infrastructure beta” in related L1 tokens. Risks remain: testnet adoption may lag and broader market conditions can dominate. But the combination of native BTC utility, a partner-heavy rollout, and a credible security design is more likely to support upside expectations than to pressure liquidity.