Hashi Testnet Brings Bitcoin Collateral Experiments To Sui

Hashi has launched a testnet on Sui, providing developers with a sandbox for a Bitcoin-backed lending design that uses native BTC collateral and a Guardian Layer security model.

The protocol’s architecture includes multi-layer transaction security, with MPC threshold signatures and a 2-of-2 multisig flow between validators and independent guardians. The goal is to bring Bitcoin into Sui-based DeFi without relying on wrappers, bridges, custodians, or synthetic representations.

Bitcoin is the largest crypto asset, but using it in DeFi typically requires wrapped tokens or bridges, which introduce risks. Hashi’s Guardian Layer adds an additional security checkpoint, requiring both validators and guardians to approve transactions, reducing reliance on a single point of failure.

However, this is a testnet, not a mainnet product. No real user funds are at stake. The system is designed to allow developers and security researchers to inspect the model, test edge cases, and verify behavior under stress before any mainnet launch.

For Sui, Hashi adds a Bitcoin DeFi narrative, positioning the high-performance Layer 1 as a platform for structured BTC-backed lending. This could attract developers building lending markets, stablecoin borrowing, or collateralized products around Bitcoin.

BTC-backed lending systems should be judged by security first, not total value locked. BTC holders are often conservative and need strong reasons to trust cross-chain systems. Hashi’s testnet gives the project a chance to earn that trust gradually.

If Hashi moves from testnet to mainnet with strong audits and developer interest, it could become an important part of Sui’s DeFi stack. For now, the value lies in the architecture and the experiment. Bitcoin DeFi will be won by systems that make Bitcoin holders comfortable enough to participate.

Source: https://bitcoinist.com/hashi-testnet-brings-bitcoin-collateral-experiments-to-sui/