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Sui’s Hashi Testnet Launches to Let Native Bitcoin Serve as On‑Chain Collateral

The testnet shows a workflow to mint hBTC on Sui while keeping BTC on Bitcoin and uses layered MPC plus a guardian 2-of-2 signing model to lower custody and tax frictions ahead of security validation.

Overview

  • Hashi launched a public testnet between July 22 and July 24, opening SDKs, integration guides, and GitHub materials so developers and institutional partners can begin integration and validation.
  • Users deposit native Bitcoin on the Bitcoin chain, receive hBTC on Sui for use in lending and DeFi, and keep the underlying BTC on its native blockchain rather than moving it off‑chain.
  • The protocol combines MPC threshold signatures with a Guardian Layer that enforces a 2-of-2 multisig requiring both a validator MPC signature and a guardian signature to approve significant BTC moves, a design meant to reduce single‑party control.
  • More than 25 custody, wallet, trading, DeFi, insurance, and audit firms including BitGo, Ledger, Cumberland, SwissBorg, and Wave Digital have signed on to test or integrate, and Fenwick issued an opinion saying deposit/redemption mechanics should not be U.S. taxable events.
  • Hashi remains a testnet experiment that must pass adversarial stress tests, formal audits, and public partner capital commitments before any mainnet launch, and those security results will determine whether institutions entrust significant BTC to the system.