Bitcoin Yield Demand Surges as Institutions Seek Liquidity Without Selling BTC: Solv CEO Explains Innovations and Growth.

The demand for Bitcoin yield-generating strategies is on the rise among institutions in India, as they seek liquidity without having to sell their BTC holdings, as per Ryan Chow, the co-founder and CEO of Solv Protocol. During a recent fireside chat at the Token2049 conference in Dubai, Chow highlighted the exponential growth in institutional interest in Bitcoin yield products over the past few years. Innovations such as staking through proof-of-stake (PoS) protocols and delta-neutral trading strategies have made it possible to generate Bitcoin yield, which was nearly impossible previously. Advancements in layer-1 and layer-2 technologies, like Babylon, have further enhanced the viability of these strategies. Babylon enables BTC holders to earn yield on their assets, which are utilized to provide security and liquidity for PoS networks. Institutions predominantly focus on Bitcoin for its dominance in portfolios, lending it out to gain liquidity without selling. Platforms like Aave and Compound offer instant borrowing against Bitcoin, while companies like Coinbase provide borrowing options of up to $1 million. Publicly traded companies like Strategy (formerly MicroStrategy) have played a significant role in normalizing BTC as a treasury asset. In an April report, Bitwise revealed a 16.1% increase in Bitcoin holdings by publicly traded firms in the first quarter of 2025, reaching a total combined value of $56.7 billion. Chow foresees over 100,000 BTC entering ecosystems like Solana in the future, leading to the emergence of more use cases. Solv recently launched a Sharia-compliant Bitcoin yield product called SolvBTC.core, which adheres to Islamic finance principles while generating yield by securing the Core blockchain network and engaging in on-chain DeFi activities. With over 25,000 BTC already locked in Solv’s protocol, valued at over $2 billion, the firm is focused on building infrastructure tailored to institutional requirements, emphasizing regulatory and cultural needs for the Indian market.

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