Sui launches Hashi testnet, letting native Bitcoin become programmable DeFi collateral for institutional lending and credit markets.
Sui Network has rolled out the Hashi testnet, opening a new path for Bitcoin to work inside DeFi. Built by Mysten Labs, the protocol lets BTC act as programmable collateral for lending, borrowing and credit while staying native on the Bitcoin chain.
A fresh security layer called Guardian Layer backs the system with multisig checks and constant monitoring.
Legal reviewers say deposits and redemptions will not trigger U.S. tax events. More than 25 partners, including BitGo, Cumberland and Suilend, are already building on the network.
Hashi Testnet Brings Guardian Layer Security to Bitcoin Collateral
The testnet launch follows Hashi’s initial announcement back in March.
Sui said the goal was always to put idle BTC to work without moving it off the Bitcoin network. Bitcoin’s market cap has crossed $1 trillion, yet most of that value sits unused for lack of safe onchain infrastructure.
Guardian Layer addresses that gap directly. Every unit of BTC collateral is locked under a 2-of-2 multisig setup.
One signature comes from Hashi’s validators, and the second comes from a designated guardian. That structure adds a checkpoint before any large transaction or collateral movement can go through.
In March, Hashi was first introduced: a new way to put $BTC to work on Sui without moving it off the Bitcoin network.
Today, Hashi testnet is live.
— Sui (@SuiNetwork) July 22, 2026
Fenwick, a law firm focused on digital assets, reviewed the mechanics behind deposits and withdrawals. According to Sui, the firm concluded the process should not count as a taxable event under U.S. law. That finding removes a common concern for institutions weighing onchain Bitcoin strategies.
Developers can now access SDK documentation and integration guides at sui.io/hashi. The testnet phase is meant for builders to stress-test lending and credit applications before mainnet arrives.
Wave Digital Assets Leads Institutional Push on Hashi
Wave Digital Assets, an SEC-registered investment adviser, has deepened its involvement with Hashi after joining during the earlier devnet phase. The firm committed to three years of work bringing Bitcoin-yield bond products onchain through the protocol.
Mysten Labs co-founder Adeniyi Abiodun said “Bitcoin is no different” when it comes to major asset classes eventually building deep credit and liquidity markets. His comment points to Hashi as the infrastructure meant to support that shift.
Beyond Wave, the partner list spans custody, trading and DeFi. BitGo, Ledger and SwissBorg cover wallet and custody access.
Cumberland, Bullish and FalconX supply liquidity. Native protocols like Suilend, Navi and Bluefin plan to offer retail lending once mainnet goes live. Security auditors Certora and OtterSec round out the risk side of the ecosystem.
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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.
Market expert Lucky described Hashi’s testnet as another step toward building infrastructure for real-world assets and capital onchain, while flagging that native BTC utility remains an early but notable development to track.
A chart by BitGuru pointed to SUI’s price pattern, comparing it to a prior accumulation phase that preceded a breakout, with support holding as buyers stayed active.
$SUI is showing a similar structure to the previous breakout after a long accumulation phase. Buyers are defending support, and if momentum continues, SUI could push toward the next major resistance. pic.twitter.com/3OA5olXhgt
— BitGuru 🔶 (@bitgu_ru) July 22, 2026
Per CoinGecko data, SUI is trading at $0.7661, up 0.03% over the past day and 1.11% over the previous week. Trading volume sits at $215,880,937 for the day. The Hashi rollout arrives as Sui continues building out its role in tokenized and cross-chain finance.
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