Bitcoin Finance Protocol Hashi Launches on Sui | BitGo, FalconX Backing

Hashi, a new Bitcoin finance protocol built on Sui, was introduced by the Sui Foundation on March 19, 2026, with BitGo, FalconX, Bullish and Erebor named among launch participants. The project is positioned as a native BTC-backed lending and credit primitive rather than a wrapped-BTC product, with devnet described as imminent and mainnet planned later in 2026, according to Sui’s announcement.

Bitcoin DeFi has struggled to convert the asset’s scale into onchain activity. Sui’s launch post for Hashi says Bitcoin is a more than $1.4 trillion asset, while only 0.22%—or about $3.07 billion—is currently used in DeFi. Hashi’s pitch is that institutions and retail users should be able to borrow, lend and deploy BTC collateral onchain without relying on opaque synthetic structures that slowed institutional adoption in 2025.

0.22% of Bitcoin in DeFi Frames the Hashi Pitch

The central data point in the launch is not a token price but a utilization gap. Sui says less than half a percent of Bitcoin’s market value is active in DeFi, despite BTC’s scale. That matters because most Bitcoin holders still face a tradeoff between long-term custody and access to liquidity. Hashi is designed to narrow that gap by letting users pledge BTC as collateral for stablecoin credit while keeping the underlying exposure.

At launch, lending is expected to be the first live use case. Sui says BTC and stablecoin holders, including BitGo clients and users of self-custody and institutional wallet providers such as Ledger, Blockdaemon, Cobo, Cubist and Fordefi, will be able to allocate BTC into yield-generating opportunities. The protocol also aims to support structured products, automated collateral management and credit origination as builders add services on top.

Why BitGo, FalconX and Erebor Matter at Mainnet

The most important launch signal is institutional participation. Sui names FalconX, Bullish and Erebor as participants expected to supply BTC or stablecoin liquidity for lending on Hashi at mainnet. Erebor is also expected to support on- and off-ramping. BitGo’s role is broader: the announcement says BitGo clients will be able to access Hashi at launch, and BitGo CEO Mike Belshe is quoted backing the effort as a route to Bitcoin-native financial services on Sui.

That matters because custody and prime brokerage are often the bottlenecks for institutional DeFi adoption. BitGo already has a footprint on Sui. In February 2023, the Sui Foundation said BitGo became the first custodian to support the Sui ecosystem, and in December 2025 Sui announced BitGo’s WBTC had gone live on Sui through LayerZero’s OFT standard. Those earlier integrations provide context for why BitGo appears again in Hashi’s launch stack.

How BTC-Backed Credit on Sui Is Structured

Hashi’s mechanism combines multi-party computation security with Sui smart contracts, according to the launch post. The protocol is designed to let custodians and Sui-native protocols offer BTC-backed stablecoin loans without forcing borrowers to sell their Bitcoin. Sui says supported assets can include Sui Dollar, eSui Dollar, FDUSD, USDC and Matrixdock’s gold-backed XAUm.

The protocol’s architecture also extends beyond direct lending. Bluefin and Concrete are expected to operate vault platforms on Hashi at mainnet, while Inveniam Capital plans real-world-asset yield strategies funded by stablecoin capital sourced from the protocol. Wave Digital, described in the announcement as an SEC-registered investment adviser, plans to issue secured, rated bonds collateralized by bitcoin and powered by Hashi. Those planned products suggest Sui is targeting not only DeFi users but also institutional treasury, structured credit and tokenized fixed-income workflows.

March 19 Security Stack Centers on Audits, MPC and Insurance

Security is a major part of the launch narrative. Sui says Hashi’s smart contracts will be audited by Asymptotic, Certora and OtterSec, with formal verification planned for each contract. That is a higher-assurance message than a standard DeFi launch because the target market includes institutions that need observable collateral terms and verifiable code behavior.

Soter Insure is also named as the provider of what Sui calls the first native Bitcoin-denominated insurance products for BTC collateral on Hashi. Under the structure described in the announcement, premiums and claims are settled in BTC rather than in dollars or stablecoins. Sui says that is intended to keep assets and liabilities matched for lenders, borrowers and custodians.

There is also a broader Sui ecosystem backdrop. SUI traded at about $0.9766 with a market capitalization near $3.8 billion and 24-hour volume of roughly $425.4 million on CoinMarketCap data visible last week. Those figures do not measure Hashi directly, but they show the base chain’s current scale as Sui tries to expand its BTCfi segment after bringing native WBTC to the network in late 2025.

What March 2026 Adds to Sui’s BTCfi Push

The launch gives Sui a more explicit institutional Bitcoin finance thesis. December 2025’s BitGo WBTC integration focused on moving Bitcoin liquidity into swaps, lending markets and pools across Sui DeFi. Hashi goes a step further by framing BTC as collateral for transparent credit origination, vault strategies and even bond issuance. In that sense, the protocol is less about token transport and more about balance-sheet utility.

Whether that thesis gains traction will depend on execution after devnet, the depth of liquidity committed at mainnet and whether institutions use the structure beyond pilot allocations. For now, the verifiable facts are narrower: Hashi was introduced on March 19, 2026; Sui says BitGo, FalconX, Bullish and Erebor are among the committed participants; and the first target product is BTC-backed lending against stablecoins on Sui.