Solv Protocol, the largest on-chain Bitcoin treasury, has announced a strategic partnership with the Stellar network. The collaboration aims to leverage Stellar's substantial USDC liquidity to create efficient, accessible Bitcoin-denominated yield opportunities for users globally.
The core mechanism involves integrating Solv's "BTC+" vault strategy—an automated yield-generating vault for Bitcoin holdings—with Stellar's fast and low-cost cross-border payments network. This will allow the conversion of idle USDC liquidity on Stellar into productive yield derived from Bitcoin-based DeFi strategies. Users, including remittance facilitators and FinTech companies, can access these BTC-denominated yields without needing to hold Bitcoin directly.
Ryan Chow, Co-founder of Solv Protocol, stated the partnership marks "the next phase of stablecoin utility, moving from cross-border transfers to capital-efficient DeFi." The initiative seeks to transform USDC from a pure medium of payment into a source of productive capital, bridging Bitcoin's store-of-value proposition with yield opportunities across chains.
Stellar's network, known for its ~5.3-second settlement times and minimal fees, holds over $200 million in USDC supply, which accounts for 94% of its $223 million in deposited stablecoins. Solv Protocol, which has a Total Value Locked (TVL) of roughly $1.217 billion, will use this liquidity to expand its BTC-backed yield strategies.
