Institutional Bitcoin lending protocol goes live later this month
Sui, a layer-1 blockchain, is launching Hashi, an institutional protocol that lets Bitcoin holders lock BTC in a vault on the Bitcoin network and mint hBTC vouchers on Sui for use in lending and decentralized finance applications. The protocol launches with $500 million in capital commitments from over 20 industry partners, according to Mysten Labs, the original creator of Sui.
Hashi targets an estimated $1 trillion in dormant institutional Bitcoin held by public companies and corporate balance-sheet holders. The protocol allows these holders to deploy native Bitcoin in DeFi without moving it off the Bitcoin ledger, addressing a compliance and custody gap that previously constrained their ability to use the asset as collateral.
The vault on Bitcoin uses a 2-of-2 multisig, requiring cryptographic sign-off from both Hashi validators. A separate independent guardian layer monitors and slows suspicious collateral movements. When users lock BTC, Hashi mints hBTC vouchers on Sui backed by the deposit. Applications on Sui then use hBTC to power lending, borrowing, credit markets, and real-world asset trading. When users exit, hBTC is burned on Sui, triggering the multisig to unlock and release the original Bitcoin on the Bitcoin network.
“Hashi is launching with serious capital and a coalition of industry leaders because institutions want to put Bitcoin to work without giving up the protections they require,” said Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Labs.
Anchorage Digital, a custody and infrastructure provider, is a day-one launch partner. Nathan McCauley, CEO and co-founder of Anchorage Digital, said the protocol represents a shift in how institutions access Bitcoin-collateralized capital. “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. “Connecting our institutional clients with Hashi represents a complete paradigm shift.”
Security firm Certora formally verified Hashi’s smart contracts. CommonPrefix reviewed Hashi’s MPC protocol cryptography. The mainnet rollout is scheduled to occur in phases later in October 2026.
Bitcoin holders are already using bitcoin-collateralized loans for university tuition, real estate acquisitions, and corporate working capital, according to Mysten Labs. The protocol is designed to provide institutional-grade compliance and transparency for these use cases on-chain.
