Bitcoin: The need for strategies to increase yields (BTCAccording to Ryan Chow, CEO and co-founder of Solv Protocol, the crypto market is growing rapidly, primarily from firms looking for liquidity but not liquidating BTC.
Chow, in a conversation with the audience at Token2049 on the first of May in Dubai said that the interest among institutions in Bitcoin yield product has grown dramatically over the years.
At first, it was almost impossible to generate Bitcoin yield. Recent innovations, such as staking through proof-of-stake (PoS) Protocols and strategies of delta-neutral trading have enabled this.
The layer-1 and the layer-2 advances, like Babylon, made these strategies viable. Babylon allows BTC investors to receive a return on their assets. These assets are then used to secure and provide liquidity to PoS network.
“Bitcoin as the largest asset class here, you can stake your Bitcoin to secure the network […] that makes us feel like if it is the answer to really bring utility and also use case,” He said.
Related: Bitcoin DeFi project Solv to launch native token on Hyperliquid
Lending emerges dominant BTC financial use case
Chow said that because Bitcoin dominates portfolios, most institutions focus their attention on it when they enter crypto. After purchasing Bitcoin, the institutions lend it to other people in order to get liquidity.
Coinbase, for example, now offers up to $1,000,000 in Bitcoin borrowing. Instant borrowing is also possible on platforms like Aave and Compound.
Chow also thanked public firms such as Strategy (formerly MicroStrategy), for their role in normalizing BTC’s status as an asset of the Treasury. “MSTR is a very successful derivatives kind of use case based on Bitcoin […] That’s also Bitcoin finance.”
Bitwise reported in an April report that Bitcoins held on public companies’ books has increased by a significant amount. rose by 16.1% in the first quarter By 2025, the year of maximum growth is expected to be around 25.
According to the report, Bitcoin was worth around 688,000 BTC at the end Q1 of this year.
The combined value Bitcoin stacks According to the company, BTC prices rose 2.2% and reached a combined total value of $56.7 Billion with a BTC price per BTC at $82,445.
Chow stated that he anticipates more than 100,000 BTC entering ecosystems, such as Solana. “There should be more and more use cases come out,” He said.
Related: Solv launches Bitcoin staking token on Solana
Solv introduces Sharia-compliant products
Chow also mentioned the firm’s recently launched Sharia-compliant Bitcoin yield product called SolvBTC.core, which generates yield by securing the Core blockchain network and engaging in onchain DeFi activities while adhering to Islamic finance principles.
“Sharia compliance is something that we prepared for a long time […] you have to pass it before you really serve them through your platform.”
With over 25,000 BTC already locked in Solv’s protocol — worth more than $2 billion — Chow said the firm is now building infrastructure tailored to institutional needs, with an emphasis on regulatory and cultural requirements.
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Source: cointelegraph.com
