Woofun AI reports that the Sui Foundation and Mysten Labs have activated the Hashi testnet, a protocol enabling Bitcoin to serve as collateral for on-chain lending without wrapping or bridging. The system retains assets on the Bitcoin network, securing deposits via a 2-of-2 multi-signature mechanism involving Hashi validators and an independent Guardian Layer. Loan terms and collateral positions are recorded on-chain for lender visibility. More than 25 institutional partners, including Bitgo, Cumberland, FalconX, Ledger, Blockdaemon, Bullish, Navi, and Scallop, are currently testing lending applications. Wave Digital Assets plans to advance a three-year Bitcoin yield bond tokenization program on Sui following the mainnet launch, though no date has been set.