The demand for yield-generating strategies around Bitcoin (BTC) is surging

The demand for yield-generating strategies around Bitcoin (BTC) is surging, especially from firms seeking liquidity without liquidating their BTC, according to Ryan Chow, co-founder and CEO of Solv Protocol.

During a fireside chat at the Token2049 conference in Dubai on May 1, Chow said institutional interest in Bitcoin yield products has grown exponentially over the past few years.

Initially, generating Bitcoin yield was nearly impossible. However, recent innovations like staking via proof-of-stake (PoS) protocols and delta-neutral trading strategies have made this possible.

Layer-1 and layer-2 advancements, such as Babylon, have made these strategies more viable. Babylon allows BTC holders to earn yield on their assets, which are used to provide security and liquidity for PoS networks.

“Bitcoin as the largest asset class here, you can stake your Bitcoin to secure the network […] that makes us feel like if it is the answer to really bring utility and also use case,” he said.

Lending emerges dominant BTC financial use case

Chow noted that institutions mainly focus on Bitcoin when entering crypto due to its dominance in portfolios. Once they purchase Bitcoin, they lend it out to gain liquidity without selling.

Companies like Coinbase now offer up to $1 million in borrowing against Bitcoin. Platforms like Aave and Compound also enable instant borrowing.

Chow also praised public firms like Strategy (formerly MicroStrategy) for helping normalize BTC as a treasury asset. “MSTR is a very successful derivatives kind of use case based on Bitcoin […] That’s also Bitcoin finance.”

In an April report, crypto fund issuer Bitwise revealed that the amount of Bitcoin held on the books of publicly traded companies rose by 16.1% in the first quarter of 2025.

The company detailed that Bitcoin holdings rose to around 688,000 BTC by the end of Q1, with firms adding 95,431 BTC over the quarter.

The value of the combined BTC stacks rose around 2.2%, reaching a total combined value of $56.7 billion with a price per BTC of $82,445, the firm added.

Looking ahead, Chow said he expects over 100,000 BTC to enter ecosystems like Solana. “There should be more and more use cases come out,” he said.

Solv launches Sharia-compliant yield products

Chow also mentioned the firm’s recently launched Sharia-compliant Bitcoin yield product called SolvBTC.core, which generates yield by securing the Core blockchain network and engaging in onchain DeFi activities while adhering to Islamic finance principles.

“Sharia compliance is something that we prepared for a long time [...] you have to pass it before you really serve them through your platform.”

With over 25,000 BTC already locked in Solv’s protocol — worth more than $2 billion — Chow said the firm is now building infrastructure tailored to institutional needs, with an emphasis on regulatory and cultural requirements.