Solv Protocol Launches SolvBTC.AVAX, a Bitcoin-Denominated Yield Token on Avalanche

Solv Protocol introduced SolvBTC.AVAX, a token on the Avalanche blockchain that offers Bitcoin-denominated yield tied to real-world assets (RWAs).

Solv Protocol has launched SolvBTC.AVAX, a token on the Avalanche blockchain offering Bitcoin-denominated yield tied to real-world assets (RWAs).

* The launch, taking place on May 16, 2025, follows a seven-party collaboration.

* Solv, Avalanche, Balancer, Elixir, Euler, Re7 Labs, and LFJ共同努力推出SolvBTC.AVAX.

* The token aims to connect Bitcoin (BTC) to yield-generating products such as U.S. Treasurys and private credit offered by BlackRock and Hamilton Lane.

* A Solv Protocol spokesperson confirmed the yield will be distributed in BTC.

SolvBTC.AVAX is powered by Elixir’s deUSD, a synthetic dollar backed by RWAs, as its core stable asset. As of May, deUSD’s market capitalization is $220 million, according to RWA.xyz. These assets include U.S. government debt and private credit.

To maximize exposure, the protocol integrates with Euler, a decentralized lending platform. This setup will enable the automated flow of capital into RWA-backed strategies without manual intervention from users.

Balancer will be managing token routing and liquidity operations, while LFJ will provide support for institutional access to traditional financial channels.

The launch follows Solv Protocol’s efforts to integrate Bitcoin with broader macroeconomic cycles, breaking away from its typical four-year market behavior, as highlighted by Solv Protocol founder Ryan Chow.

The demand for Bitcoin yield products has been increasing with growing institutional adoption. Earlier in May, Coinbase launched the Bitcoin Yield Fund, aiming for a 4% to 8% annual return. It relies on a cash-and-carry strategy, combining spot purchases with futures contracts.

In December 2024, CoinShares analyst Satish Patel noted the rising interest in BTC as a yield instrument in addition to a value store. This shift has led major platforms to introduce yield-bearing BTC products.

One example is Strategy, led by Michael Saylor, which tracks its performance through BTC Yield—a metric measuring the additional Bitcoin gained relative to its shares. As of May, this figure stands at 15.5% year-to-date.

According to DefiLlama, Solv Protocol has over $2.3 billion in total value locked (TVL). The platform provides BTC-focused yield services across several blockchains.

SolvBTC.AVAX adds to Solv’s RWA strategies, offering users exposure to traditional instruments through the Avalanche network. The token remains BTC-centric, with yield payouts being made entirely in Bitcoin.

While the protocol hasn't disclosed the exact yield percentage for SolvBTC.AVAX, its structure highlights the broader trends of RWA-token integration and automated yield delivery.