Bitcoin DeFi Has Been Elusive. Can Mysten Labs Bring $1.4 Trillion Onchain? - Unchained Recap

Podcast: Unchained

Published: 2026-03-20

Guests: Adeni Abiodin

What Happened

Adeni Abiodin, co-founder and CPO of Mysten Labs, discussed the potential of unlocking $1.4 trillion in Bitcoin through DeFi with their new initiative, Hashi. Hashi aims to integrate native Bitcoin into the DeFi ecosystem without the need for wrapped assets, which typically result in taxable events and limited adoption.

Hashi uses a decentralized smart contract-based system to allow Bitcoin to be used as collateral, providing liquidity without selling the asset. This is achieved through a multi-party computation (MPC) wallet that locks Bitcoin on-chain, enabling direct borrowing via the Bitcoin network to access stablecoins without third-party trust.

The platform is designed for institutional use, with over 24 partners including custodians and financial institutions, and has gained input from sovereign wealth funds. Hashi's smart contracts are formally verified and backed by insurance from SOTA Insure, ensuring both security and reliability.

Mysten Labs, the team behind the SUI blockchain, leverages cryptographic primitives from the SUI network to secure Hashi. With more than 125 validators participating, Hashi aims to extend Bitcoin's reach beyond the 1% held by Wrapped Bitcoin (WBTC), which suffered due to its taxable nature.

Hashi also enables the minting of Bitcoin-denominated bonds and stablecoins like SUIDollar, backed by US Treasuries. Wave Digital is set to issue the first secured rated bond collateralized by Bitcoin through Hashi, marking a significant step in integrating Bitcoin into traditional financial instruments.

The network's speed, described as the fastest in crypto, is supported by a team with experience in Meta's Libra project, including renowned cryptographers. CF Benchmarks and QBIS provide pricing data, ensuring accurate and transparent operations for Hashi's users.

Hashi's introduction is seen as a potential game-changer for the DeFi space, with the ability to unlock a substantial portion of Bitcoin's market cap. This innovation could lead to a more integrated financial ecosystem where Bitcoin plays a central role in DeFi operations.

Key Insights