Solv Protocol has launched a yield-bearing Bitcoin token on the Avalanche blockchain, giving institutional investors more exposure to yield opportunities backed by real-world assets, or RWAs.<\/p>\n
On May 16, the protocol unveiled SolvBTC.AVAX, a token that connects Bitcoin (BTC<\/a>) to real-world assets like US Treasurys and private credit offered by BlackRock<\/a> and Hamilton Lane.\u00a0<\/p>\n The new token was developed through a seven-way partnership involving Solv, Avalanche, Balancer, Elixir, Euler, Re7 Labs, and LFJ, the company said.\u00a0<\/p>\n Solv Protocol founder Ryan Chow said the token is a way to link Bitcoin to \u201creal-world economic cycles\u201d in uncorrelated assets such as US government bonds and private credit, as opposed to BTC\u2019s typical boom-and-bust four-year cycle.<\/p>\n The token uses a multi-protocol strategy to generate yield involving Elixir\u2019s deUSD stablecoin, Treasurys provided by BlackRock<\/a> and Hamilton Lane via Elixir, and incorporated on the lending platform Euler to increase RWA exposure.<\/p>\n \u201cThe yield is received in BTC format,\u201d a Solv Protocol spokesperson told Cointelegraph<\/p>\n Elixir deUSD is a synthetic dollar with nearly $220 million in market capitalization. Source: <\/em>RWA.xyz<\/em><\/a><\/p>\n Solv is a Bitcoin-centric staking platform that offers yield strategies across various blockchains and decentralized finance applications. The protocol commands more than $2.3 billion in total value locked, according to industry data.\u00a0<\/p>\n Solv Protocol\u2019s TVL. Source: <\/em>DefiLlama<\/em><\/a><\/p>\n Related: <\/strong><\/em>Bitcoin supply crunch boosts confidence in $200K target for 2025 \u2014 Bitwise CIO<\/strong><\/em><\/a><\/p>\n Demand for Bitcoin yield solutions has grown amid the recent wave of institutional adoption of digital assets.<\/p>\n Earlier this month, crypto exchange Coinbase launched the Bitcoin Yield Fund<\/a>, which aims to offer annual returns of between 4% and 8% on BTC holdings.\u00a0<\/p>\n The yield will be earned through a cash-and-carry strategy, which involves purchasing BTC in the spot market and selling a corresponding futures contract, Coinbase said. <\/p>\n CoinShares analyst Satish Patel predicted the growing interest in Bitcoin yield<\/a> in December, noting that more investors now see BTC \u201cnot only as a store of value but also as a means to generate yields.\u201d<\/p>\n While there are many ways to generate Bitcoin yield, such as leveraging derivatives or yield farming, Michael Saylor\u2019s Strategy<\/a> introduced its own \u201cBTC Yield\u201d metric to measure the performance of its investment strategy.<\/p>\n Strategy\u2019s BTC Yield, which measures how much additional Bitcoin it\u2019s acquiring relative to its outstanding shares, is currently 15.5% year-to-date, according<\/a> to the company.\u00a0<\/p>\nThe race to offer Bitcoin yield intensifies<\/h2>\n