Bitcoin-centered stacking platform Solv Protocol has launched a structured yield vault for institutional investors, which targets more than $ 1 trillion in BTC, which is currently sitting idle and not collecting interest.
Solav’s new BTC+ is designed as a bitcoin (BTC), which collects capital in various yield strategies and capitals in various yield strategies spread in decentralized finance (DEFI), centralized finance (CEFI) and traditional finance markets, Solav announced on Thursday.
These strategies include protocol stacking, base arbitration and yield from real -world assets, especially including Blackrock’s Buddha Fund.
According to the vault company, onchain integrates the proof-off-revolution of the channel for verification. It also includes drawdown safety measures based on Net Asset Value (NAV) – a risk management feature that is commonly used by limited partners in private equity investment.
Solav stated that BTC+ operates using a “dual-layer architecture”, which separates detention from the yield-edged strategies, connecting another layer of security.
Solav’s co-founder Ryan Chow said, “Bitcoin is one of the most powerful forms of the world’s collateral, but its yielding capacity has decreased.” According to the data from the defilama, the total value in the protocol exceeds $ 2 billion in the lock (TVL) onchain.
Solav is not the only company that targets the growing bitcoin yield market. In April, the Crypto Exchange Coinbase launched a dedicated bitcoin yield fund for institutional customers outside the US, with a return of up to 8% through cash-and-carry strategy. The company said that the purpose of the offer is “to address the growing institutional demand for bitcoin yield”.
Meanwhile, Crypto Investment firm XBTO has offered bitcoin yield products with Arab bank Switzerland that generates returns by selling BTC options to collect premiums. The fund is targeting an annual return of about 5%.
Connected: Solva brings RWA-supported bitcoin yield for avalanche blockchain
Bitcoin financially intensifies as it becomes a major institutional property
While the initial crypto adopted has long postponed bitcoin as a better form of money-its lack, portability and bear-asset properties-its use as a fiscal property has been limited to the recent use when it began to increase in institutional interests.
After the approval of the US Securities and Exchange Commission (SEC) of the Spot Bitcoin Exchange-Treded Fund (ETF) in January 2024, Bitcoin has become one of the most demanded alternative investments among institutional investors.
Since the ETF approval, the price of bitcoin has exceeded 156%, increasing its market capitalization to about $ 2.5 trillion. This dramatic appreciation combined with increasing institutional adoption has forced JP Morgan to consider Bitcoin ETF accepting as a debt collateral.
The tendency of financialization has also reached federal regulators. As the coinlagraph reported, the US Federal Housing Finance Agency recently directed Fanny Mae and Freddy Mac how bitcoins and other crypto assets can be integrated into the risk assessment for home loans.
The innings was estimated at the end of last year, when coinser analyst Satish Patel predicted that the produce generation would become a priority with the growth of institutional bitcoin holdings.
On the Corporate Front, the business intelligence company and the prolific bitcoin holder Strategy introduced an ownership “BTC Yield” metric to estimate how its bitcoin treasury strategy contributes to shareholder price.
Crypto Mining Company Mara Holdings has also given priority to Bitcoin Yield, recently increased the amount of BTC allocated to two Primes.
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Connected: Despite the record high, S&P is below in terms of 500 bitcoins
