Hashi has launched its testnet on the Sui blockchain, bringing a so-called Guardian Layer designed to secure Bitcoin collateral used in decentralized finance. The move lets institutions mint hBTC — a wrapped Bitcoin token — and deploy native BTC as collateral inside Sui-based DeFi protocols.
How the Guardian Layer works
The Guardian Layer sits between the Bitcoin blockchain and Sui. It monitors the collateral pool in real time, flagging any attempt to mint hBTC without the corresponding BTC locked on the Bitcoin side. Hashi says the layer is meant to prevent the kind of reserve shortfalls that have plagued other wrapped-Bitcoin projects.
The system uses a set of permissioned validators — the “guardians” — that must sign off on each mint and burn. If a guardian detects an anomaly, it can freeze the minting process until the issue is resolved. The testnet currently runs with a small guardian set; Hashi plans to expand that as the network matures.
What this means for institutions
Institutions have long wanted to use their Bitcoin holdings in DeFi without giving up custody or trusting a single bridge operator. Hashi’s approach lets them keep native BTC and still earn yield on Sui. The hBTC token is minted one-to-one against locked Bitcoin, and the Guardian Layer is supposed to guarantee that ratio stays honest.
The timing matters. Sui has been pushing into institutional DeFi this year, and a Bitcoin-backed collateral option could attract liquidity that has stayed on the sidelines. Hashi’s testnet is open now; developers and institutions can start experimenting with the minting and redemption flow.
Testnet details
The testnet is live as of this week. Hashi hasn’t announced a mainnet date yet, but the testnet phase is expected to run for at least a few months. The team is asking for feedback on the Guardian Layer’s performance and the overall user experience.
For now, the testnet supports a limited number of guardians and a capped minting volume. Those limits will lift as the system proves itself. Whether institutions will actually move Bitcoin onto Sui in meaningful size depends on how the Guardian Layer holds up under real stress — and that’s exactly what the testnet is for.
