From CoinDesk · By Omkar Godbole, AI Boost
Layer-1 blockchain Sui is launching Hashi, an institutional protocol allowing holders to use Bitcoin as collateral without moving it off the Bitcoin network.
The system is debuting with $500 million in capital commitments from a coalition of over 20 industry partners to ensure deep day-one liquidity.
Hashi’s mainnet will roll out in phases, targeting a massive pool of roughly $1 trillion in dormant, institutional Bitcoin.
Bitcoin BTC$82,538.08-backed finance is about to get a massive, well-funded liquidity boost.
Layer-1 blockchain Sui is set to launch Hashi, a new institutional network that allows holders to use Bitcoin as collateral for lending without moving it off the Bitcoin ledger. The mainnet is slated to roll out in phases later this month.
To back the ecosystem, the initiative has already secured $500 million in capital commitments from a coalition of over 20 industry partners.
While these are commitments rather than immediate deposits, the pre-pledged capital ensures that when the system debuts, markets can open with deep liquidity instead of starting empty.
“Hashi is launching with serious capital and a coalition of industry leaders because institutions want to put Bitcoin to work without giving up the protections they require,” Adeniyi Abiodun, Co-Founder and Chief Product Officer of Mysten Labs, the original creator of Sui, said in an official announcement.
The primary target for this capital is a massive pool of dormant wealth. Sui estimates that roughly $1 trillion worth of Bitcoin is currently sitting idle. Until now, institutional and corporate balance-sheet holders have lacked a compliant, transparent ecosystem to safely deploy their native Bitcoin in decentralized finance (DeFi).
This launch comes amid a broader shift in Bitcoin-backed finance, where borrowing is moving far beyond speculative crypto trading. Bitcoin holders now use bitcoin-collateralized loans to cover real-world expenses like university tuition, real estate acquisitions, and corporate working capital.
"Public companies and institutions hold enormous amounts of Bitcoin, but their ability to use that capital has been constrained by the technology available to them," said Nathan McCauley, CEO and co-founder of Anchorage Digital, a day-one launch partner that also plans to supply stablecoin liquidity to the network.
"Connecting our institutional clients with Hashi represents a complete paradigm shift,” McCauley added.
Here’s how the system overcomes these institutional constraints. Instead of bridging across blockchains, users securely lock their BTC in a vault address directly on the Bitcoin blockchain. A 2-of-2 multisig secures this address, requiring cryptographic sign-off from both Hashi’s validators. Hashi also has a separate, independent guardian layer designed to monitor and slow suspicious collateral movements.