New Network Lets Holders Borrow Without Selling Bitcoin, Secures $500M Before Launch!

Hashi, which is scheduled to launch in the Sui ecosystem this month, has secured $500 million in capital commitments from more than 20 partners so institutions can use their Bitcoin as collateral for loans without selling it or moving it off the Bitcoin network.

Hashi, announced by Mysten Labs, the developer of Sui, focuses on helping institutional investors put their Bitcoin (BTC) holdings to work in lending and borrowing applications. The mainnet is scheduled to open in stages in October, with the partners’ capital commitments intended to provide initial liquidity.

According to Sui’s estimate, approximately $1 trillion worth of Bitcoin is currently sitting idle. Hashi aims to make some of these assets available for use as collateral, particularly targeting companies and institutions that hold BTC on their balance sheets.

Bitcoin Stays Put, Loans Are Used on Sui

Under the model, users’ BTC is locked in a vault address on the Bitcoin blockchain. In return, hBTC, representing the deposited Bitcoin, is issued on Sui. Lending and borrowing applications use this tokenized asset, while the original Bitcoin remains on its own network.

When a user wants to exit the system, hBTC is burned and the process of returning the Bitcoin begins. Both validators must approve any movement of BTC from the vault. The system also includes an independent protection layer designed to monitor and slow suspicious collateral movements.

Preparing to Launch With $500 Million in Commitments

The combined $500 million commitment from more than 20 industry partners is intended to help credit markets launch with liquidity. Anchorage Digital, one of the initial partners, also plans to provide stablecoin liquidity.

Hashi’s smart contracts underwent formal verification by Certora, while CommonPrefix reviewed the cryptographic design of its multiparty computation protocol.