The demand for yield-generating strategies surrounding Bitcoin (BTC) is experiencing a remarkable surge, particularly as institutional investors seek liquidity solutions without the need to liquidate their BTC holdings. Ryan Chow, co-founder and CEO of Solv Protocol, highlighted this growing trend during a fireside chat at the recent Token2049 conference held in Dubai on May 1.
Chow remarked that institutional interest in Bitcoin yield products has escalated significantly in the past few years. Initially, the notion of generating a yield from Bitcoin seemed unattainable. However, recent advancements in financial technology have transformed this landscape, making strategies like staking through proof-of-stake (PoS) protocols and delta-neutral trading feasible.
Among these innovations, layer-1 and layer-2 advancements such as Babylon have proven pivotal. Babylon allows Bitcoin holders to earn yield on their assets, which are subsequently utilized to bolster security and liquidity for PoS networks. Chow elaborated that the potential of staking Bitcoin to secure networks offers a compelling use case, indicating that the largest asset class in the cryptocurrency space is beginning to find practical utility.
Chow pointed out that institutions tend to favor Bitcoin when entering the crypto market, primarily due to its dominance in investment portfolios. After acquiring BTC, many institutions choose to lend out their holdings to maintain liquidity while avoiding liquidation. Major exchanges, like Coinbase, now offer borrowing against Bitcoin with limits reaching up to $1 million. Additionally, platforms such as Aave and Compound provide instant borrowing capabilities that further enhance the ease of liquidity management in the crypto space.
Chow commended organizations like MicroStrategy (now rebranded as Strategy) for normalizing Bitcoin as a treasury asset. He mentioned, “MSTR is a very successful derivatives kind of use case based on Bitcoin… that’s also Bitcoin finance.” This shift reflects a broader trend, as a report from crypto fund issuer Bitwise revealed that the total amount of Bitcoin held by publicly traded companies rose by 16.1% in the first quarter of 2025, bringing their total Bitcoin holdings to around 688,000 BTC.
The report noted a total value increase of these combined holdings to approximately $56.7 billion. Given the volatility of Bitcoin’s price, this signifies a robust and growing asset base among public companies. Looking ahead, Chow anticipates significant growth in the adoption of Bitcoin-based yield strategies, projecting over 100,000 BTC to flow into ecosystems like Solana.
In addition to traditional yield generation methods, Chow announced the launch of a Sharia-compliant Bitcoin yield product known as SolvBTC.core. This innovation allows Bitcoin to generate yield through securing the Core blockchain network while participating in on-chain DeFi activities that adhere to Islamic finance principles. Chow emphasized the importance of Sharia compliance and the thorough preparation required to serve this user demographic effectively.
With over 25,000 BTC currently locked in Solv’s protocol, translating to more than $2 billion, the company is dedicated to developing tailored infrastructure that meets institutional needs, prioritizing regulatory and cultural considerations.
