Solv Protocol has introduced a new Bitcoin-focused yield product aimed at institutional investors, targeting the vast pool of over $1 trillion in idle BTC that currently generates no interest.
The platform’s latest offering, BTC+, is a structured yield vault designed to optimize returns on Bitcoin by leveraging multiple yield strategies across decentralized finance (DeFi), centralized finance (CeFi), and traditional markets. These include protocol staking, basis arbitrage, and income from tokenized real-world assets such as BlackRock’s BUIDL fund, according to Solv’s announcement on Thursday.
To enhance transparency and security, the BTC+ vault integrates Chainlink’s Proof-of-Reserves for real-time onchain verification and employs drawdown safeguards based on net asset value (NAV) — a risk management tool often used in private equity.
Solv also revealed that BTC+ uses a dual-layer architecture, separating asset custody from yield-generating strategies to provide additional protection for investors. The platform currently holds over $2 billion in total value locked (TVL), according to data from DeFiLlama.
Solv’s launch comes amid a broader industry trend toward Bitcoin yield products targeting institutional capital. In April, Coinbase introduced a Bitcoin yield fund for non-U.S. institutional clients, promising returns of up to 8% using a cash-and-carry strategy.
Elsewhere, crypto investment firm XBTO has teamed up with Arab Bank Switzerland to offer a BTC yield product that generates income by selling options to collect premiums, aiming for annualized returns of around 5%.
Major financial institutions are taking notice. JPMorgan has reportedly considered accepting spot Bitcoin ETFs as loan collateral, while the U.S. Federal Housing Finance Agency recently directed Fannie Mae and Freddie Mac to explore incorporating crypto into mortgage risk assessments.
With institutional Bitcoin holdings on the rise and the financialization of crypto accelerating, yield generation is quickly emerging as the next frontier in Bitcoin investing — a trend forecasted by CoinShares analyst Satish Patel in late 2024.
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