Solv launches RWA-backed Bitcoin yield product

Solv Protocol has announced the launch of SolvBTC.AVAX, a modular Bitcoin yield product backed by real-world assets.

Editor’s note: This article has been updated to reflect the correct names of institutional products, changing references to BlackRock BUIDL and Hamilton Lane SCOPE.

The Bitcoin (BTC) yield vault is backed by Solv, Avalanche (AVAX), Euler, Elixir, LFJ and Balancer, Solv Protocol said in an announcement.

According to the team, the launch of SolvBTC.AVAX aims to further tap into the $1.3 trillion Bitcoin market, where an estimated 94% of the supply remains largely idle. The new product seeks to unlock yield opportunities for Bitcoin holders by integrating with real-world asset infrastructure.

With SolvBTC.AVAX, users can earn core yield sourced from major real-world asset players such as BlackRock BUIDL and Hamilton Lane SCOPE. The protocol will use the token to explore deeper integration between Bitcoin and real-world assets.

“Bitcoin holds a market cap of over $1.3 trillion, yet more than 94% of BTC remains idle, generating no yield. Meanwhile, RWAs have exploded 10x since early 2022, now exceeding $22.1 billion in on-chain collateral,” Solv Protocol noted.

The RWA sector has seen rapid institutional adoption, with firms such as BlackRock BUIDL, Brevan Howard, Franklin Templeton, and Hamilton Lane SCOPE increasing exposure.

Currently, more than $6.9 billion of real-world assets is  in tokenized U.S. Treasuries. Most of these funds are on-chain, with over $5.3 billion tokenized on Ethereum. Per rwa.xyz, Stellar, Solana, Arbitrum and Avalanche have market shares of $463 million, $303 million, $187 million and $124 million respectively.

Solv Protocol’s SolvBTC.AVAX is designed to accelerate interest in RWA by offering Bitcoin holders access to real yield.

The token is a yield-bearing Bitcoin asset built to leverage decentralized finance infrastructure and deliver RWA-backed returns. Solv describes it as the first institutional-grade RWA yield product designed specifically for Bitcoin finance. 

SolvBTC.AVAX will launch on Avalanche, with the layer-1 blockchain providing for scalable, low-cost execution layer. Avalanche will also offer ecosystem incentives targeted at growing Bitcoin finance.