Sui has introduced the Hashi testnet, marking a new testing phase for a Bitcoin cross-chain system first presented in March. Hashi allows native Bitcoin to be used as collateral for financial apps on Sui while remaining on the Bitcoin mainnet. Bitcoin holders do not need to transfer assets off the Bitcoin network during the process.
According to an X (formerly Twitter) post published by the SUI network on Wednesday, developers and institutions can now test Bitcoin-backed lending and borrowing before a planned mainnet launch. During the testnet phase, participants can evaluate application performance and complete integrations before the system begins handling live assets.
Hashi is designed to let users lock Bitcoin as collateral and access loans or credit in other digital assets. Sui aims to connect Bitcoin liquidity with financial services on its blockchain while keeping Bitcoin on the Bitcoin network throughout the collateral process.
Guardian Layer Adds Joint Approval for Bitcoin Collateral
Hashi introduces a Guardian Layer built around a 2-of-2 multi-signature model. Every transaction involving staked Bitcoin requires approval from both Hashi validators and an independent guardian before completion. Sui said such an arrangement adds another review step for asset transfers and large transactions.
According to Sui, financial institutions can build products including Bitcoin-backed lending, yield products, and derivatives using Hashi. Wave Digital joined as an initial partner for development during the early deployment of the system.
Sui said Fenwick West has issued a legal opinion regarding Hashi’s deposit and withdrawal process. Under that opinion, deposits and withdrawals made through Hashi are not expected to qualify as taxable events under U.S. law.
Partners Prepare Products and Network Integrations
Wave Digital Assets will spend the next three years developing Bitcoin-yield bond products through Hashi. During the testnet phase, developers have access to software development kit resources and technical integration materials to test custody integrations, application performance, and workflows before full deployment.
Several organizations have joined the network during the early phase. Custody and wallet providers include Ledger, BitGo, SwissBorg, Fordefi, Blockdaemon, and Cobo. Trading and liquidity firms include FalconX, Bullish, Erebor, and Cumberland.
Financial applications preparing integrations include Fluid, AlphaLend, Navi, Suilend, Current, Bluefin, and Scallop. Additional participants include providers of vault services, asset management, oracle services, security auditing, and insurance, as testing continues before the planned mainnet release.
Coinbase Introduces SUI Token Staking
Coinbase has also added direct staking support for SUI tokens on its platform. Users can stake their SUI holdings through Coinbase and receive rewards credited directly to eligible accounts.
Coinbase said staking services are available through its dedicated staking page. Availability depends on regional regulations, so the service is not offered in every market.
Hashi entered public testing after its introduction in March, giving developers and institutional participants time to verify technical setups and operational processes before the planned mainnet launch. The current testing phase is intended to confirm the system’s readiness before it begins handling real assets.
