Sui Network just dropped the Hashi testnet, and its pitch is straightforward: let Bitcoin do more without asking Bitcoin holders to give up custody of their coins. The system enables native BTC to function as collateral for lending, borrowing, and credit markets, all while the underlying Bitcoin stays parked on its own blockchain.
What Hashi actually does
At its core, Hashi is a decentralized Bitcoin collateralization system. It allows users to pledge their BTC as collateral and access DeFi products built on Sui, without requiring the Bitcoin to be wrapped, bridged in the traditional sense, or otherwise moved into a custody arrangement that strips away Bitcoin’s native security guarantees.
The security architecture centers on something called the Guardian Layer. This employs a 2-of-2 multisig mechanism that combines Hashi validators with separate guardians. In English: two independent parties both have to sign off on any transaction, which means no single entity can run off with funds.
For institutional users, the system layers on threshold signatures as an additional safeguard. The whole design philosophy leans heavily toward what the project calls “low trust environments,” relying on Sui validators and verified smart contracts rather than centralized intermediaries.
