Why Wrapped Tokens Can't Unlock Bitcoin's $1.4 Trillion Liquidity, but Hashi Might

Summary

• Hashi is a trust-minimized protocol designed to unlock Bitcoin's liquidity for DeFi without creating taxable events, unlike wrapped tokens such as WBTC.
• WBTC has only captured about 1% of Bitcoin's total supply, largely due to the taxable nature of wrapping Bitcoin, which limits adoption.
• Hashi uses an MPC wallet on the Bitcoin network, secured by over 125 SUI blockchain validators and additional guardianship, ensuring decentralization and formal verification of smart contracts.
• Institutions like ETFs, sovereign wealth funds, banks, and hedge funds can lock Bitcoin to mint stablecoins (e.g., USDC, USDT) or Bitcoin-denominated bonds for lending and yield generation.
• Built based on direct input from institutional clients who faced due diligence and trust issues with existing L2 solutions and centralized lending mechanisms like Celsius.
• Major partners including Alphalen, BitGo, Bullish, Falcon X, and others control billions in Bitcoin, supporting Hashi's adoption and credibility.
• Insurance is integrated to cover potential DeFi losses, with payouts in Bitcoin, enhancing security for institutional users.
• Hashi works for both self-custody and centralized custody users (e.g., via Coinbase), broadening accessibility beyond retail to large financial entities.
• Aims to significantly exceed WBTC's 1% capture by providing a tax-efficient, secure platform for Bitcoin-based yields, targeting the broader $1.4 trillion Bitcoin liquidity.
• Emphasizes a product-driven approach, solving specific institutional pain points around trust, tax, and security in decentralized finance.