Key Takeaways:
The Sui network has announced a new protocol named Hashi, designed to make Bitcoin a native asset for decentralized finance (DeFi) applications on its blockchain. The move, supported by over 20 institutions, aims to rewrite the rules of trust for using Bitcoin in financial products.
"Hashi provides a decentralized and secure way to move assets between chains, starting with Bitcoin and Sui," a spokesperson for the project said. "This allows Bitcoin holders to finally use their assets in the growing DeFi world without relying on centralized bridges."
The core of the Hashi protocol is a system that allows for the trustless transfer of Bitcoin to the Sui network, where it can be used as collateral for lending, borrowing, and other DeFi activities. This is expected to significantly increase the Total Value Locked (TVL) on Sui, which currently stands at approximately $700 million, according to data from DefiLlama. The integration of Bitcoin, with its market capitalization of over $1 trillion, represents a substantial new source of liquidity.
This development positions Sui as a significant contender in the expanding Bitcoin DeFi (BTCFi) space, competing with other Layer 2 solutions and sidechains that are also working to unlock Bitcoin's potential. The success of Hashi could lead to a positive impact on the SUI token's value and drive wider adoption of the ecosystem. The next milestone for the project is the mainnet launch, expected in the coming months.
This article is for informational purposes only and does not constitute investment advice.
