The Sui Foundation is preparing for a phased mainnet rollout of the Hashi protocol in October 2026, backed by over $500 million in initial capital commitments. This substantial pool of capital comes from a launch partner coalition of more than 20 global financial institutions and firms.
Hashi’s primary function allows Bitcoin holders to deploy their native BTC as collateral across various decentralized finance services within the Sui ecosystem. Coin holders can access lending facilities, rotate assets in automated vaults, and enter bond instruments - all without minting conventional wrapped tokens that typically require moving physical BTC off its native chain. The initial $500 million figure represents committed capital from institutional partners rather than total value locked (TVL) already deposited on-chain.
How Hashi Locks Assets
Hashi’s mechanism relies on holding BTC directly on its native network. The technical process leverages a 2-of-2 multi-party computation (MPC) architecture layered with a Guardian Layer developed by Mysten Labs. Once user assets are securely locked within this protective layer, the Hashi protocol mints hBTC tokens on the Sui network.
The redemption cycle follows the reverse path. When users wish to exit their positions and withdraw their assets, the protocol burns the circulating hBTC on Sui and releases native BTC back to the user’s original Bitcoin wallet address.
Tax Status and Institutional Moves
A design that avoids moving the underlying value-bearing coin offers distinct legal advantages. Law firm Fenwick has issued a legal opinion concluding that locking BTC to receive hBTC tokens does not constitute a taxable event under US federal income tax principles. This applies because ownership rights to the underlying asset never transfer to a third-party entity.
The coalition backing Hashi’s launch brings turnkey institutional infrastructure. Major asset managers and firms such as BitGo, Bullish, Cumberland, FalconX, and Ledger have signed on. The network also engages specialized crypto vault managers, including Aftermath, Concrete, and Fluid.
Anchorage Digital plays a front-line role as a day-one partner. It is set to provide Hashi clients access through its Atlas settlement platform and Porto self-custody wallet. Looking ahead, Anchorage Digital also plans to supply stablecoin liquidity to the Hashi network.
The Sui Foundation’s move to bypass conventional cross-chain bridges offers a fresh pathway for institutional players. They now have a way to access Bitcoin-backed lending without selling their core holdings or triggering year-end tax liabilities.
Reported via crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
