Hashi Protocol Enables Native Bitcoin Collateral on Sui Network Without Wrapping or Custody

TLDR: Hashi enables native Bitcoin to act as DeFi collateral on Sui Network without wrapping or centralized custody. Less than 0.37% of Bitcoin’s $1.4 trillion market cap currently participates in decentralized finance activity. Trust is reduced to two components only — the Sui validator set and the protocol’s governing smart contract. Institutional partners including Ledger, BitGo, and FalconX have aligned with Hashi ahead of its Devnet launch. Hashi, a new developer primitive built on the Sui Network, is changing how Bitcoin interacts with decentralized finance. Bitcoin’s market cap currently exceeds $1.4 trillion, yet less than 0.37% of it participates in DeFi activity. The constraint has never been demand — it has been trust. The protocol addresses this by enabling native Bitcoin to serve as smart contract collateral, with no wrapping or centralized custody required. How Hashi Is Rethinking Bitcoin’s Role in DeFi Traditional approaches to Bitcoin in DeFi have depended heavily on intermediaries. Wrapped assets like cbBTC and WBTC often create taxable events upon transfer. Custodians introduce trust-related risks, and opaque balance sheets have drawn regulatory scrutiny. These issues have played out across several market cycles already. The protocol takes a structurally different approach to this problem. Bitcoin remains on its native chain throughout the entire process. Collateral is verified across both the Bitcoin and Sui networks simultaneously. Smart contracts handle all execution, removing the need for human intermediaries in the core design. The trust model is narrowed to just two components. These are the Sui validator set and the governing smart contract. All collateral and loan terms remain transparent and observable on-chain at all times. Liquidations and collateral management are handled programmatically, without manual oversight. Crypto analyst Eye Zen Hour noted on X that past DeFi models carried real risks. Those risks, the post stated, “have alr...