Hashi Testnet Goes Live, Targeting a Slice of Bitcoin's $1.4 Trillion Market

The Sui Foundation and Mysten Labs have launched the testnet for Hashi, a Bitcoin-collateral protocol that enables BTC to be used as collateral in onchain lending and credit markets without ever leaving the Bitcoin network.

This move targets a slice of the $1.4 trillion Bitcoin market, with over 25 institutional partners testing the protocol, including Bitgo, Cumberland, and Wave Digital. The testnet phase allows builders and institutions to integrate lending, borrowing, and credit products before real money is at stake.

Hashi keeps Bitcoin on the Bitcoin network itself, using a 2-of-2 multisig arrangement to secure deposits and prevent single-point-of-failure risks. This approach also carries a tax advantage over rival designs, according to legal analysis cited by Sui.