diff --git a/python/tests/base_api/test_estimate_hive_collateral.py b/python/tests/base_api/test_estimate_hive_collateral.py
new file mode 100644
index 0000000000000000000000000000000000000000..5c5d92acb15a5c122d94aad44ccadb37c728a2a2
--- /dev/null
+++ b/python/tests/base_api/test_estimate_hive_collateral.py
@@ -0,0 +1,21 @@
+from __future__ import annotations
+
+from typing import TYPE_CHECKING
+
+import pytest
+
+if TYPE_CHECKING:
+    from wax.interfaces import IWaxBaseInterface
+
+
+@pytest.mark.descrbe("Should be able to estimate hive collateral")
+def test_estimate_hive_collateral(wax: IWaxBaseInterface) -> None:
+    estimated_hive_collateral = wax.estimate_hive_collateral(
+        current_median_history_base=wax.hbd.satoshis(201),
+        current_median_history_quote=wax.hive.satoshis(1000),
+        current_min_history_base=wax.hbd.satoshis(197),
+        current_min_history_quote=wax.hive.satoshis(1000),
+        hbd_amount_to_get=wax.hbd.satoshis(100000),
+    )
+
+    assert estimated_hive_collateral == wax.hive.satoshis(1065988)