The demand for yield-generating methods round Bitcoin (BTC) is surging, particularly from companies in search of liquidity with out liquidating their BTC, in accordance with Ryan Chow, co-founder and CEO of Solv Protocol.
Throughout a fireplace chat on the Token2049 convention in Dubai on Could 1, Chow stated institutional curiosity in Bitcoin yield merchandise has grown exponentially over the previous few years.
Initially, producing Bitcoin yield was almost inconceivable. Nevertheless, current improvements like staking by way of proof-of-stake (PoS) protocols and delta-neutral buying and selling methods have made this doable.
Layer-1 and layer-2 developments, akin to Babylon, have made these methods extra viable. Babylon permits BTC holders to earn yield on their belongings, that are used to offer safety and liquidity for PoS networks.
“Bitcoin as the most important asset class right here, you may stake your Bitcoin to safe the community […] that makes us really feel like if it’s the reply to essentially convey utility and in addition use case,” he stated.
Associated: Bitcoin DeFi project Solv to launch native token on Hyperliquid
Lending emerges dominant BTC monetary use case
Chow famous that establishments primarily concentrate on Bitcoin when coming into crypto attributable to its dominance in portfolios. As soon as they buy Bitcoin, they lend it out to achieve liquidity with out promoting.
Firms like Coinbase now supply as much as $1 million in borrowing in opposition to Bitcoin. Platforms like Aave and Compound additionally allow immediate borrowing.
Chow additionally praised public companies like Technique (previously MicroStrategy) for serving to normalize BTC as a treasury asset. “MSTR is a really profitable derivatives form of use case based mostly on Bitcoin […] That’s additionally Bitcoin finance.”
In an April report, crypto fund issuer Bitwise revealed that the quantity of Bitcoin held on the books of publicly traded corporations rose by 16.1% in the first quarter of 2025.
The corporate detailed that Bitcoin holdings rose to round 688,000 BTC by the tip of Q1, with companies including 95,431 BTC over the quarter.
The worth of the mixed Bitcoin stacks rose round 2.2%, reaching a complete mixed worth of $56.7 billion with a worth per BTC of $82,445, the agency added.
Wanting forward, Chow stated he expects over 100,000 BTC to enter ecosystems like Solana. “There must be increasingly more use instances come out,” he stated.
Associated: Solv launches Bitcoin staking token on Solana
Solv launches Sharia-compliant yield merchandise
Chow additionally talked about the agency’s lately launched Sharia-compliant Bitcoin yield product known as SolvBTC.core, which generates yield by securing the Core blockchain community and fascinating in onchain DeFi actions whereas adhering to Islamic finance ideas.
“Sharia compliance is one thing that we ready for a very long time […] it’s important to go it earlier than you actually serve them by means of your platform.”
With over 25,000 BTC already locked in Solv’s protocol — value greater than $2 billion — Chow stated the agency is now constructing infrastructure tailor-made to institutional wants, with an emphasis on regulatory and cultural necessities.
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