Solv Protocol Launches a New Bitcoin Token on Avalanche That Lets Holders Earn Real-World Asset-Backed Yield

Solv Protocol, a Bitcoin (BTC) staking platform, just dropped a new token called SolvBTC.AVAX, aiming to help Bitcoin holders earn yield on their BTC

Solv Protocol, a Bitcoin (BTC) staking platform, has launched a new token called SolvBTC.AVAX on the Avalanche network to help Bitcoin holders earn yield on their BTC.

The latest product from Solv Protocol, a Bitcoin (BTC) staking platform, will aim to help Bitcoin holders earn yield on their BTC on the Avalanche network, with help from big names like BlackRock.

Solv Protocol has launched a new token called SolvBTC.AVAX on the Avalanche blockchain, an initiative that has brought together seven key players—Solv, Avalanche, Elixir, Euler, Re7 Labs, LFJ, and Balancer—to develop a novel framework for cross-chain RWA (real-world asset) yield.

Institutions participating in this venture include renowned investment management corporation BlackRock, Inc. (NYSE:LQD), recognized for its vast asset portfolio, and Hamilton Lane (NASDAQ:HLMC), a leading private markets investment firm. Together, they contribute over $4 billion in assets to this endeavor.

These institutions are providing U.S. Treasuries through Elixir, a DeFi liquidity protocol, to mint deUSD, a stablecoin that powers the SolvBTC.AVAX strategy.

The initiative also utilizes the Euler lending protocol to amplify the RWA exposure, with Re7, a specialized risk management firm, closely monitoring the markets on Euler, encompassing SolvBTC, deUSD, and sdeUSD.

Finally, the remaining capital is allocated to liquidity pools on LFJ and Balancer to generate swap fees and AVAX rewards, aiming to maximize returns and foster broader adoption of the SolvBTC.AVAX token.

Solv handles the seamless minting, borrowing, compounding, and rewards distribution, while Avalanche provides the rapid and cost-effective blockchain infrastructure for the entire operation.

In addition to yield, holders of SolvBTC.AVAX will also be eligible for rewards in Avalanche (AVAX) tokens and other incentive points, further aiming to grow adoption through a triple-layer reward system.

Earlier, crypto news outlet reported that BlackRock’s tokenized money market fund BUIDL has officially entered the decentralized finance sector. Euler Labs, the firm behind the Euler protocol, confirmed in an X post that sBUIDL, a token backed 1:1 by BlackRock’s BUIDL and issued by Securitize, is now live on the Euler protocol.

This marks sBUIDL’s first direct integration with DeFi, enabling users to easily mint sBUIDL on Euler using various tokens.

BUIDL is a tokenized share of BlackRock’s U.S. Treasury Money Market Fund, aiming to provide institutions outside the crypto sector with a seamless entry point into DeFi.

Earlier this year, BlackRock announced a strategic partnership with Coinbase (NASDAQ:COIN) to facilitate institutional-grade access to digital assets. Afterward, rumors circulated about a potential collaboration with Euler Labs to integrate its money market fund into the decentralized finance sector.

Now, Euler Labs has unveiled that Elixir, a leading DeFi liquidity protocol known for its role in integrating U.S. Treasuries into DeFi via cooperation with Hamilton Lane, has completed the integration of sBUIDL into the Euler lending protocol.

Elixir is a core component of the Solv Protocol’s strategy for developing SolvBTC.AVAX, a tokenized bitcoin strategy on Avalanche that combines RWA exposure with triple-layer token incentives.

The integration of sBUIDL marks a significant step in bringing institutional capital into the decentralized finance sector.