Solv launches RWA-backed Bitcoin yield product

Solv Protocol has announced the launch of SolvBTC.AVAX, a modular Bitcoin yield product backed by real-world assets.

The Bitcoin ( BTC ) yield vault is backed by Solv, Avalanche ( AVAX ), Euler, Elixir, LFJ and Balancer, Solv Protocol said in an announcement .

According to the team, the launch of SolvBTC.AVAX aims to further tap into the $1.3 trillion Bitcoin market, where an estimated 94% of the supply remains largely idle. The new product seeks to unlock yield opportunities for Bitcoin holders by integrating with real-world asset infrastructure.

With SolvBTC.AVAX, users can earn core yield sourced from major real-world asset players such as BlackRock and Hamilton Lane. The protocol will use the token to explore deeper integration between Bitcoin and real-world assets.

“Bitcoin holds a market cap of over $1.3 trillion, yet more than 94% of BTC remains idle, generating no yield. Meanwhile, RWAs have exploded 10x since early 2022, now exceeding $22.1 billion in on-chain collateral,” Solv Protocol noted.

The RWA sector has seen rapid institutional adoption, with firms such as BlackRock, Brevan Howard, Franklin Templeton, and Hamilton Lane increasing exposure.

Currently, more than $6.9 billion of real-world assets is  in tokenized U.S. Treasuries. Most of these funds are on-chain, with over $5.3 billion tokenized on Ethereum. Per rwa.xyz , Stellar, Solana, Arbitrum and Avalanche have market shares of $463 million, $303 million, $187 million and $124 million respectively.

Solv Protocol’s SolvBTC.AVAX is designed to accelerate interest in RWA by offering Bitcoin holders access to real yield.

The token is a yield-bearing Bitcoin asset built to leverage decentralized finance infrastructure and deliver RWA-backed returns. Solv describes it as the first institutional-grade RWA yield product designed specifically for Bitcoin finance . 

SolvBTC.AVAX will launch on Avalanche , with the layer-1 blockchain providing for scalable, low-cost execution layer. Avalanche will also offer ecosystem incentives targeted at growing Bitcoin finance.