Solv Protocol has introduced SolvBTC.AVAX, a yield-bearing Bitcoin token on the Avalanche blockchain, aimed at institutional investors seeking Bitcoin exposure with real-world asset (RWA) backing. The token integrates Bitcoin (BTC) with assets such as US Treasurys and private credit provided by major institutional players including BlackRock and Hamilton Lane.
The product results from a seven-way partnership involving Solv, Avalanche, Balancer, Elixir, Euler, Re7 Labs, and LFJ. It employs a multi-protocol strategy utilizing Elixir’s deUSD stablecoin, tokenized Treasurys, and lending through Euler to enhance RWA exposure, with yields received in BTC format.
Solv Protocol, a Bitcoin-focused staking platform managing over $2.3 billion in total value locked (TVL), sees this launch as a means to connect Bitcoin’s traditional boom-and-bust cycle with real economic cycles through uncorrelated asset exposure. The initiative taps into a large market opportunity, considering that roughly 94% of the $1.3 trillion Bitcoin supply remains idle without yield.
Institutional adoption of RWAs has surged, with over $22 billion in on-chain collateral, and firms like BlackRock expanding their footprint. Avalanche’s scalable and low-cost execution environment supports this innovation with potential ecosystem incentives aimed at fostering Bitcoin-based finance.
The emergence of Bitcoin yield solutions reflects growing demand from institutional investors, as also exemplified by recent Bitcoin yield product launches like Coinbase's Bitcoin Yield Fund. The trend underscores a shift in viewing Bitcoin not only as a store of value but also as a yield-generating asset.