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

Miston Labs' Hashi unlocks Bitcoin for trust-minimized DeFi using on-chain MPC, formal verification, and Bitcoin-denominated insurance to onboard institutions and enable bonds, lending, and yield.

Key Takeaways

Hashi enables native Bitcoin lending without wrapping: locks BTC in on-chain MPC wallets on Bitcoin, avoiding taxable derivative events and letting custodians originate loans and yield.
Security by design: 125+ SWE validators sign the MPC, requiring majority approval with a Guardian fallback, plus formal verification and institutional insurance as final safeguards.
Bitcoin-native insurance: premiums and claims are paid in BTC and automated on-chain at minting or deposit, aiming for low premiums via robust security guarantees.
Institutional tooling and partners: integrates custodians (BitGo, Ledger, First Digital), supports RIAs, and accesses stablecoins (USDC, First Digital USD, Agora USD, SWE dollar).
On-chain bonds and composability: Wave Digital and others can issue rated, tradeable Bitcoin-denominated bonds; Hashi uses SWE primitives and oracles for instant issuance, trading, settlement.
Key risks and mitigations: covers Bitcoin network failure, SWE validator collusion, and smart-contract bugs; addressed with formal verification, multisig Guardians, layered insurance, and legal clarity on tax treatment.

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