- Hashi announces that it will allow using Bitcoin in DeFi without wrappers.
- This project is built on Sui blockchain.
- With this feature, investors can lend, borrow and generate yield via Bitcoin.
A new project which is known as Hashi is trying to solve one of crypto’s biggest gaps, which is putting Bitcoin (BTC) to work in decentralized finance (DeFi). This project is built on the Sui blockchain and with this project, Hashi aims to let people use their Bitcoin for things such as lending, borrowing, and earning yield. All of this without needing to convert Bitcoin into risky or unclear wrapped versions.
This is a big deal because while BTC’s total value is almost $1.4 trillion, and only a tiny portion (which is around 0.22%) is currently being used in DeFi. Most investors simply hold their BTC and do not use it to generate returns.
What Makes Hashi Different?
Till now, using Bitcoin in DeFi usually meant turning it into synthetic or wrapped tokens. These BTCs, once wrapped, are hard to trust, especially for big institutions, as these wrapped BTC rely on third parties and lack full transparency.
Hashi takes a different route. It allows BTC to move between networks like BTC and Sui in a way that is transparent and verifiable. So, basically, users do not have to “wrap” their BTC; they can use it more directly.
It also uses smart contracts to automatically manage things like collateral. That means if someone borrows money using Bitcoin, the system handles risk and repayment rules without any human intervention.
Strong Backing from Major Players
Hashi is not launching quietly. The DeFi infrastructure has support from major crypto and financial firms such as BitGo, FalconX, Ledger, and Bullish.
These firms are expected to provide liquidity and infrastructure, which is crucial for making the system actually work at scale. For example, some partners will help users move money in and out (on/off ramps), while others will help keep assets secure.
This level of backing shows that the institutions are seriously interested in using Bitcoin beyond just holding it.
How People Can Use It?
Once Hashi is live on the mainnet, institutions and everyday users will be able to put their BTC to use in various ways. First, the investors will be able to borrow money. For example, Bitcoin will be used as collateral to borrow stablecoins such as USDC.
Then the institutions and everyday users will be able to earn yield by depositing BTC into strategies that generate returns. Finally, credit creation will also be possible as it will allow lending systems where borrowers and lenders can interact directly.
Moreover, there are also integrations with DeFi platforms such as AlphaLend and Scallpo, that make things all the way more easier for users to participate from day one.
Focus on Security and Transparency
Security is one of Hashi’s biggest selling points. It uses advanced systems like multi-party computation (MPC), which splits control of assets across multiple parties instead of relying on a single entity.
On top of that, its smart contracts have been audited by firms like Certora to make sure that everything works as expected and reduces risk.
There’s even insurance support. With services like Soter Insure, users can get coverage for their Bitcoin in case of theft or loss.
If Hashi succeeds, it could unlock idle Bitcoin by turning it into a usable financial asset for lending, borrowing, and investments. Built on Sui, it may attract institutions with its secure and transparent design. Despite short-term volatility, Hashi focuses on long-term infrastructure for Bitcoin-powered finance.
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