Adeni Abiodin, co-founder and CPO of Misten Labs, discusses Hashi, a new decentralized infrastructure for unlocking Bitcoin in DeFi without creating wrapped assets or tax events.

The conversation covers how Hashi uses SUI blockchain validators to secure Bitcoin through MPC wallets, enabling institutional-grade lending and borrowing. Key topics include the technical architecture with 125+ validators, formal verification of smart contracts, Bitcoin-denominated insurance, and partnerships with over 20 institutions including BitGo, Bullish, and Ledger for launching later in 2025.

Bitcoin's DeFi Problem and Hashi's Solution

"2026 is going to be a year where Bitcoin truly becomes a collateral instrument, especially in DeFi" - Adeni, noting that Bitcoin ETFs in 2024 couldn't earn yield

Nearly 60% of crypto market cap in Bitcoin never cross-proliferated into DeFi, with existing L2 solutions failing to drive real growth

Hashi enables native Bitcoin lending without wrappers or tax events using "decentralized network to power the borrow and lending" with formally verified smart contracts

Over 20 partners announced including custodians, hardware wallet providers, exchanges, and financial institutions

Technical Architecture: MPC Wallets and Validator Security

"Every single validator on the SUI network, over 125 validators, are all part of the signatory on the multi-sig account" - Adeni

Bitcoin locks into MPC wallet on-chain on existing Bitcoin network, never leaving Bitcoin network itself, with no derivative assets created

Majority of validators required to move funds, with additional guardian model as backstop against validator collusion

Same cryptographic primitives securing billions on SUI network used to secure Bitcoin MPC wallet

Risk Management: Formal Verification and Insurance

Formal verification provides "mathematical proof that you look at the smart contract coding" to ensure contracts do exactly what's programmed

"It's actually the strongest guarantee you can get in computer science for smart contracts" - Adeni on formal verification

SOTA Insure provides first native Bitcoin-denominated insurance where "premiums and claims are settled in native Bitcoin"

Insurance premiums kept low by demonstrating minimal loss probability through formal verification and validator security model

Products: Bonds, Stablecoins, and DeFi Integration

Wave Digital will issue "first secured actual rated bond that's fully collateralized by Bitcoin" powered by Hashi

Access to multiple stablecoins including USDC, First Digital USD, Agora USD, and native SUI Dollar backed by US Treasuries

SUI Dollar yields flow back to network, enabling "reduced borrowing rates because the yield you're getting from Bitcoin can go to lower your cost of borrowing"

Full integration with SUI DeFi protocols including Navi, Scalab, SuiLend, and AlphaLend for Bitcoin-based loans

Institutional Focus and Tax Advantages

Built specifically for "large banks, sovereign wealth funds, nation states who have a large Bitcoin treasury" after extensive institutional input

"Legal opinion showing that Hashi does not constitute a tax event, especially in many jurisdictions, in the US for example" - Adeni

Partners control "billions of dollars, hundreds of billions of dollars worth of BTC" including BitGo, Bullish, Harbor Bank, and Ledger

CF Benchmarks and other oracle providers ensure accurate Bitcoin pricing for optimal loan-to-value ratios

Resources Mentioned

Developing and Administering an Early Childhood Education Program

am of the world-leading cryptographers in the world. So, something like this is built with a lot of research and development. We're formally verified smart contracts with a team that effectively has b