Bitcoin yield demand booming as institutions seek liquidity — Solv CEO
Demand for yield-generating strategies around Bitcoin (BTC) is increasing, particularly among firms seeking liquidity without selling their BTC. Institutional interest in Bitcoin yield products has grown significantly, driven by innovations like staking via proof-of-stake (PoS) protocols and delta-neutral trading strategies. Layer-1 and layer-2 advancements, such as Babylon, enable BTC holders to earn yield while providing security for PoS networks. Institutions primarily focus on Bitcoin due to its portfolio dominance, often lending it out for liquidity. Companies like Coinbase offer substantial borrowing against Bitcoin, while platforms like Aave and Compound facilitate instant borrowing. Public firms have increased their Bitcoin holdings by 16.1% in Q1 2025, totaling approximately 688,000 BTC. Chow anticipates over 100,000 BTC entering ecosystems like Solana. Solv Protocol has launched a Sharia-compliant Bitcoin yield product, SolvBTC.core, which adheres to Islamic finance principles, with over 25,000 BTC locked in the protocol. The firm is developing infrastructure tailored to institutional needs, focusing on regulatory and cultural requirements.
