Sui has launched its Hashi testnet, enabling Bitcoin to be used as programmable collateral in decentralized finance (DeFi) – specifically for institutional lending and credit markets.
The Sui Network has launched its Hashi testnet, enabling new possibilities for using Bitcoin within the world of decentralized finance (DeFi). Developed by Mysten Labs, this technology allows Bitcoin to be used as collateral for loans and other financial activities directly on the Bitcoin blockchain.
The system is now protected by a new security feature called Guardian Layer, which uses multiple approval checks and continuous monitoring to keep it safe.
According to legal experts, simply depositing or withdrawing funds won’t create any taxable events in the U.S. Plus, over 25 companies – like BitGo, Cumberland, and Suilend – are already developing applications on this network.
Hashi Testnet Brings Guardian Layer Security to Bitcoin Collateral
The testnet launch follows Hashi’s initial announcement back in March.
Sui explained their aim was to find a way to utilize Bitcoin that’s currently sitting inactive, all without taking it off the Bitcoin network. While Bitcoin’s total value exceeds $1 trillion, much of it isn’t being used due to a lack of secure systems for transactions directly on the blockchain.
Guardian Layer solves this problem by requiring all Bitcoin collateral to be secured using a 2-of-2 multisignature setup.
One approval comes from the network’s validators, and another from a specific guardian. This two-step process acts as a safety check before significant transactions or asset changes are processed.
As a researcher, I’m excited about Hashi, which launched in March. It’s an innovative approach that allows you to earn rewards with your Bitcoin ($BTC) while keeping it secure on the original Bitcoin network – all within the Sui ecosystem.
Today, Hashi testnet is live.
— Sui (@SuiNetwork) July 22, 2026
As an analyst covering digital assets, I’ve been following the legal considerations around on-chain transactions closely. Recently, Fenwick, a leading law firm in this space, examined how deposits and withdrawals work with Sui. Their conclusion is significant: based on their review, these actions shouldn’t be considered taxable events under current U.S. tax laws. This really addresses a key worry for institutions that are thinking about implementing strategies using Bitcoin directly on the blockchain.
Developers can find the latest SDK documentation and integration guides at sui.io/hashi. Currently, the network is in a testing phase allowing developers to thoroughly test their lending and credit apps before the official launch.
Wave Digital Assets Leads Institutional Push on Hashi
Wave Digital Assets, a registered investment firm overseen by the SEC, has significantly expanded its partnership with Hashi, having initially joined during the early testing phase. They’ve committed to a three-year project to bring Bitcoin-based bond products directly onto the blockchain using the Hashi protocol.
Adeniyi Abiodun, a co-founder of Mysten Labs, believes Bitcoin will ultimately develop robust lending and trading systems just like other major assets. He sees Hashi as the foundational technology designed to make this happen.
In addition to Wave, our partners include companies specializing in secure asset storage (custody), trading, and decentralized finance (DeFi). BitGo, Ledger, and SwissBorg provide wallet and custody solutions.
Cumberland, Bullish, and FalconX are providing funds to support the system. Several platforms built directly into the network – Suilend, Navi, and Bluefin – are planning to offer loans to everyday users once the main network is fully launched. Certora and OtterSec are handling security checks to help keep everything safe.
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SUI Price Trends as Hashi Ecosystem Expands
Market watchers have weighed in on what the launch means for Sui’s broader direction.
According to market expert Lucky, Hashi’s testnet is a positive move towards creating the necessary foundation for bringing real-world assets and investments onto the blockchain. He also highlighted the increasing, though still early, use of Bitcoin itself as something to watch closely.
BitGuru’s analysis showed SUI’s price is behaving similarly to how it did before a previous surge. The price has been steadily increasing with consistent buying activity, suggesting another breakout could be coming.
SUI is behaving like it’s starting another upward move, following a period where its price steadily increased. Currently, buyers are stepping in to prevent the price from falling, and if this buying pressure keeps up, SUI could reach its next significant resistance level.
— BitGuru 🔶 (@bitgu_ru) July 22, 2026
According to CoinGecko, SUI is currently priced at $0.7661. It’s seen a slight increase of 0.03% in the last 24 hours and a 1.11% rise over the past week. Daily trading volume reached $215,880,937. This comes as Sui expands its focus on tokenized and cross-chain financial solutions with the launch of Hashi.
2026-07-22 21:49