Sui unveils Bitcoin finance infrastructure ‘Hashi’

Sui on the 20th unveiled a core infrastructure dubbed ‘Hashi’ aimed at putting trillions of dollars’ worth of idle Bitcoin (BTC) assets to work in on-chain finance, as it moves to target the institution-led Bitcoin finance market.

Through Hashi, Sui plans to build an environment that can offer a range of decentralized finance (DeFi) services—such as stablecoin lending and structured products—using Bitcoin as collateral. The infrastructure is designed around smart contracts that execute automatically without intermediaries.

Bitcoin is currently an asset class worth about $1.4 trillion, but only around 0.22% is used in DeFi. Despite the emergence of synthetic Bitcoin products, analysts say limited collateral transparency has constrained inflows from institutional investors.

To address these issues, Hashi introduces a structure that enables direct use of native BTC. Users can borrow stablecoins against Bitcoin collateral or, conversely, borrow BTC against stablecoin collateral, while cross-chain asset transfers are handled automatically.

Major institutions have been signing on even ahead of launch. Bitgo, Bullish, B, FalconX, Erebor Bank, Ledger, and FortyFi—among other global finance and custody firms—have confirmed participation. Sui ecosystem protocols including Alphaland, Navi, Scallop, and Suilend are also joining from the outset.

Erebor Bank, in particular, is set to support fiat on- and off-ramps that connect on-chain and off-chain flows. FalconX and Bullish will participate as liquidity providers for Bitcoin and stablecoins.

Adeniyi Abiodun, co-founder and chief product officer (CPO) of Mysten Labs, said, “Hashi is core infrastructure that enables developers to access large-scale Bitcoin liquidity,” adding that “new Bitcoin-based financial services will begin to emerge in earnest.”