SUI Network launched the Hashi testnet this week, a new layer designed to pull native Bitcoin into the DeFi ecosystem. The testnet enables BTC to be used directly as programmable collateral for lending and borrowing — no wrapped tokens or bridges required. More than 25 partners are already backing the initiative, signaling early industry appetite for Bitcoin-native DeFi.
Native BTC as collateral
Hashi testnet lets users lock up actual Bitcoin and use it to borrow or lend other assets on SUI. That's a shift from the usual approach, where Bitcoin holders have to wrap their coins (like wBTC or renBTC) to participate in DeFi. Those wrapped versions introduce counterparty risk and extra steps. Hashi aims to cut that out by making native BTC a first-class asset in the lending pool.
The testnet is live now. Developers and early users can start experimenting with the lending and borrowing protocols. The team says the system treats BTC as programmable collateral, meaning it can be used in smart contracts just like any other token on SUI.
Over 25 partners on board
The launch comes with a roster of more than 25 partners, though the network hasn't named them all yet. The list includes infrastructure providers, DeFi protocols, and wallet builders. That kind of early support suggests the project has traction before the mainnet even goes live.
Partners are expected to help integrate Hashi into their own products, which could speed up adoption. For now, the testnet is the place where those integrations get tested.
A new testnet for Bitcoin DeFi
Bitcoin DeFi has been a hot topic for years, but most attempts have relied on sidechains or custodians. Hashi takes a different route by building directly on SUI's architecture. The testnet is the first step toward a mainnet launch, though no date has been set yet.
The timing makes sense. Bitcoin's price has stabilized after a volatile first half of 2026, and developers are looking for ways to put the dormant capital in BTC wallets to work. Hashi offers one path — if the testnet proves out the technology.
The testnet is open now. The next milestone will likely be a mainnet launch, but the team hasn't given a timeline. For now, the focus is on getting feedback from the partner network and the broader developer community.
