Solv Protocol Unlocks the Future of BTCfi
In Brief
What happens when Bitcoin meets real-world finance? Jing Xiong of Solv Protocol shares how BTCfi, RWAs, and institutional-grade infrastructure could transform Bitcoin from a passive asset into the backbone of decentralized finance.
What happens when the world’s most recognized crypto asset meets the trillion-dollar potential of real-world finance? Can Bitcoin evolve from a passive store of value into the foundation of a new decentralized financial system?
In this interview, we sit down with Jing Xiong, Co-Founder and Chief Business Officer at Solv Protocol, to explore the rise of BTCfi (Bitcoin DeFi), the strategic role of RWAs, and how Solv Protocol is building the institutional-grade infrastructure to unlock Bitcoin’s untapped potential.
Can you share your journey to Web3?
Before entering the crypto and Web3 space—and before founding Solv Protocol—most of my career was in traditional finance. My background focused largely on TradFi products, structured products, options, and trading. That was the core of what I did before making the shift into crypto.
How do you define BTCfi, and why do you think this is the right time to bring RWAs into the Bitcoin ecosystem?
That’s a very good question for multiple reasons. First, Bitcoin is increasingly being recognized beyond the boundaries of crypto. We saw this begin with ETFs, and now there’s talk about stablecoin legislation. You’re seeing its adoption spread into more areas of traditional finance infrastructure. As an asset class, Bitcoin is becoming more important and more integrated.
When we talk about BTCfi—or Bitcoin Finance—we’re really talking about building financial infrastructure around Bitcoin. That can mean bringing TradFi closer to DeFi or integrating Bitcoin more deeply into the traditional banking system. As for RWAs, crypto today has a market cap of roughly one to two trillion dollars. Real-world assets offer the potential to bring in many more trillions of dollars into this space, leveraging the infrastructure we’ve built over the years.
So why now? Because adoption is growing, demand for returns is increasing, and the space is becoming more sophisticated. I believe there’s no better time than now.
What strategic gap does Solv Protocol aim to fill in the BTCFi ecosystem?
That’s something we’ve thought about deeply. Bitcoin has traditionally been a store of value. Most holders keep their BTC in custody solutions—cold wallets or exchanges—without really using it. But given that Bitcoin is the face of crypto, we believe it’s too important to remain idle. It should have utility and productivity. Solv Protocol aims to improve the effectiveness of BTC by integrating it more fully with on-chain infrastructure.
We’ve seen how productive ETH has become through the Ethereum ecosystem and L2s. We see no reason why BTC, being the dominant crypto asset, shouldn’t reach or surpass that level of usability.
In your view, what’s missing from current RWA solutions in crypto, and how does Solv Protocol’s new product aim to change that?
Many existing RWA products flow in just one direction: they bring off-chain assets like treasury bills, money market funds, and credit products on-chain. And while these assets are valuable, they’re targeted at an on-chain audience that generally has lower purchasing power.
What we’re doing at Solv Protocol also looks at the reverse flow—exporting on-chain opportunities to capital outside the crypto ecosystem, where trillions of dollars are sitting. That’s a major focus for us.
A concrete example is our product, BTC.CORE. It allows users to stake their BTC on-chain and earn strong returns. We’ve also worked on getting such products through financial barriers. For example, in the Middle East, we recently received Sharia compliance for this product after six months of work. The goal is broader adoption—bringing these offerings to users outside the current crypto-native base.
Tell us more about the core mechanics of Solv Protocol’s institutional-grade RWA yield product. What makes it different?
When we talk about “institutional-grade,” it means assets are not hosted in hot wallets but stored in qualified, regulated custody solutions. These vary across regions—for example, in Korea, there are only a few regulated custodians, while the U.S. has many more.
Additionally, smart contract transparency and governance are becoming increasingly important. Institutions are now highly focused on proper execution and compliance, done right and tailored to each region’s regulatory landscape. So our approach is to combine regulated custody, smart contracts, and geographic-specific compliance to meet institutional standards.
Why did you choose BTC as the primary asset to wrap this yield product?
We believe BTC is one of the most underutilized yet most important assets in the space. Because of its importance and the fact that it’s not being fully used, we saw an opportunity. BTC holders should be able to generate additional returns based on their risk appetite, and we believe there’s strong product-market fit here.
Who is this product really for—institutions, whales, or advanced retail?
From our experience, it caters to a wide range of users. Our platform aims to generate returns for all BTC holders. Some products offer lower risk and lower returns, while others are higher risk and potentially offer higher returns.
Institutional users, dealing with large capital pools, often prefer simple, lower-risk options with modest yields. Retail users, on the other hand, tend to have higher risk appetites and are more open to exploring new products and chains. We appreciate this mix—it allows us to test, adapt, and fine-tune offerings for different segments.
Do you anticipate this project becoming a new benchmark for BTC-based DeFi yield?
Yes, I definitely hope so. We’ve been working on this for over two years. It’s encouraging to see it becoming top of mind for many users. Our hope is that it gains wide adoption across both retail and institutional audiences and that it becomes a benchmark in the space for BTC-based DeFi yield products.
What has been the biggest hurdle in aligning the needs of BTC holders with real-world yield markets?
To me, BTC is like digital gold—most holders don’t want to sell it or actively use it. At the same time, most RWA products require fiat or stablecoins. So the challenge becomes: how can BTC holders access RWA products and yields without selling their BTC?
We’re working on solutions that allow diversification, starting with BTC holdings. There’s clear demand and interest from users who want exposure to RWAs, and our job is to build the pathways that allow them to do that directly with BTC.
How does this product fit into Solv Protocol’s 12-month roadmap? Is it the first of several institutional offerings?
Absolutely. What we’re seeing is that users are becoming more savvy and more interested in new yield products. Education and familiarity are growing. Our focus is on creating offerings that meet these evolving needs. This is the first of many institutional-grade products we plan to launch in the coming months.
Do you see BTCfi evolving into a major DeFi subsector in the next cycle, or does it remain more of a niche play for now?
I believe BTCfi will become a mainstream pillar of DeFi. ETH has long been the bedrock of DeFi, but given Bitcoin’s significance, I don’t see why it should continue playing second fiddle. I’m very bullish that BTCfi won’t just be a niche—it will be one of the dominant forces shaping the future of decentralized finance.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
