Sui Launches Hashi for Bitcoin DeFi Yields on Devnet

The Sui blockchain has launched Hashi, a new protocol designed to enable Bitcoin holders to earn yields, lend, and borrow against their assets within decentralized finance without selling their holdings. The platform debuted on Sui's development network on Thursday, marking an initial step toward broader integration of Bitcoin's liquidity into on-chain financial services.

Hashi addresses a key inefficiency in the cryptocurrency market, where Bitcoin's market capitalization exceeds $1 trillion but less than 0.5 percent of its supply is actively used in DeFi protocols. By providing mechanisms for native Bitcoin deployment, the protocol allows users to generate returns through lending stablecoins against BTC collateral or accessing automated yield strategies. Transactions are processed via smart contracts on the Sui network, which track Bitcoin addresses across chains for real-time visibility into collateral and borrower health without relying on wrapped or synthetic assets. This approach incorporates programmatic management of collateral ratios and liquidations to enhance security and transparency.

The launch has drawn early support from several institutional players, including...