Key Highlights
- Sui launched the Hashi testnet to enable Bitcoin-backed lending and DeFi without moving BTC off the Bitcoin network.
- The platform introduces a Guardian Layer with a 2-of-2 multisig model to enhance collateral security and transaction monitoring.
- Major partners, including BitGo, Ledger, FalconX, and Wave Digital Assets, joined the ecosystem ahead of the planned mainnet launch.
Sui, a new blockchain platform, has introduced the Hashi testnet. This system allows Bitcoin to be used as security for financial applications on Sui, all while keeping the Bitcoin itself on the original Bitcoin network.
As an analyst, I’m following the recent announcement from the network regarding their testnet launch. Essentially, this allows developers, financial institutions, and those building the infrastructure to start experimenting with and integrating Bitcoin-backed lending, borrowing, and credit products. This is all happening *before* they officially release these features on the main network.
Hashi, a new method for earning rewards with Bitcoin ($BTC) directly on the Sui network without transferring it, was announced in March. Now, the test version of Hashi is available for use.
— Sui (@SuiNetwork) July 22, 2026
The launch includes the Guardian Layer, a new security feature for Bitcoin used as collateral. This system requires two approvals – one from Hashi validators and another from a chosen guardian – for any transaction. It’s designed to closely monitor and protect large Bitcoin transfers and collateral.
How Hashi works
Although Bitcoin’s total value is over $1 trillion, most of it isn’t being used in ways that generate income, like lending. Hashi aims to change that by letting Bitcoin be used as a flexible form of security on the Sui blockchain. According to legal experts at the Fenwick law firm, using Hashi to deposit and withdraw Bitcoin shouldn’t create any taxable events under current U.S. tax rules.
Adeniyi Abiodun, co-founder and Chief Product Officer at Mysten Labs, explained that established asset types usually build systems for borrowing and easy trading. Hashi is designed to help Bitcoin develop those same kinds of financial markets directly on its blockchain.
Ecosystem starts growing
Wave Digital Assets is partnering with us from the start and will spend the next three years building Bitcoin-based investment products that earn returns. Our testnet gives developers the tools they need – like software guides and instructions – to start experimenting, connecting secure storage solutions, and checking how well their applications work.
A variety of companies are joining the launch ecosystem. For secure digital asset storage, BitGo, Blockdaemon, Cobo, Fordefi, Ledger, and SwissBorg will offer custody and wallet solutions. Bullish, Cumberland, Erebor, and FalconX will provide liquidity and trading services. Several DeFi platforms – including AlphaLend, Bluefin, Current, Scallop, Suilend, Fluid, and Navi – are working to connect to the system. Other partners are focused on areas like secure vaults, asset management tools, data feeds (oracles), insurance, and security checks.
Hashi was first launched in March. Now, the testnet phase is open, allowing more people to try it out and test its limits. This lets users check their systems and workflows before the official release.
Coinbase adds SUI staking
Coinbase now lets users stake SUI tokens directly through the platform. By staking, users earn rewards which are automatically added to their accounts.
Now you can easily earn rewards by staking SUI right from your Coinbase account! You’ll start receiving those rewards immediately, directly into your account – no need to look elsewhere to grow your crypto.
— Coinbase 🛡️ (@coinbase) July 22, 2026
Coinbase announced on X (formerly Twitter) that users can now stake cryptocurrency through a special section of their website, but this feature isn’t accessible everywhere.
Can the security hold up?
Hashi is currently being tested, and ensuring it’s both secure and runs smoothly are top priorities before we officially release it.
The platform is built using a secure system involving multiple approvals for transactions, a safety layer called the Guardian Layer, and connections to various service providers to handle Bitcoin used as collateral. Although these features are designed to enhance security, they will be thoroughly tested by developers and partners on a public test network to ensure everything works correctly in practice.
Hashi, similar to other decentralized finance platforms, needs to prove its security, how it operates, and how well it works with partners before more people start using it.
2026-07-22 19:21