Solv Protocol Unveils SolvBTC.AVAX With Avalanche And Elixir, Debuting RWA-Backed Bitcoin Yield Backed By BlackRock And Hamilton Lane
In Brief
Solv Protocol announced the launch of SolvBTC.AVAX, a yield-generating Bitcoin token designed to leverage DeFi infrastructure and offer returns supported by RWAs.
Bitcoin staking platform, Solv Protocol announced the launch of SolvBTC.AVAX, a yield-generating Bitcoin token designed to leverage decentralized finance infrastructure and offer returns supported by real-world assets. Developed through a collaboration involving Solv, Avalanche, Elixir, Euler, Re7 Labs, LFJ, and Balancer, the initiative is supported by $4 billion in institutional assets managed by BlackRock and Hamilton Lane. The introduction of SolvBTC.AVAX is positioned as a notable development in extending RWA-backed yield mechanisms to Bitcoin holders.
“This isn’t just another yield product; it’s a framework for aligning Bitcoin with the broader financial world,” said Ryan Chow, Founder of Solv Protocol, in a written statement. “By linking BTC to real-world economic cycles and uncorrelated assets like Treasuries and private credit, we’re delivering scalable, transparent infrastructure that redefines what Bitcoin can do,” he added.
Bitcoin currently holds a market capitalization exceeding $1.3 trillion, yet a substantial majority—more than 94%—of BTC remains inactive and does not generate yield. At the same time, the real-world asset (RWA) sector has expanded, growing tenfold since early 2022 and now representing over $22.1 billion in on-chain collateral, including more than \$6 billion in tokenized U.S. Treasuries. This contrast underscores a growing rationale for integrating Bitcoin with RWA-based yield strategies.
With the introduction of SolvBTC.AVAX, Solv Protocol aims to connect Bitcoin to the fast expanding RWA ecosystem. By incorporating tokenized financial instruments such as U.S. Treasuries and private credit—originating from institutional players like BlackRock and Hamilton Lane—the platform seeks to reposition Bitcoin as a yield-generating component within the broader financial landscape. Utilizing a modular architecture and supported by contributors such as Elixir and Avalanche, SolvBTC.AVAX represents a new approach to institution-grade infrastructure for enabling RWA-backed returns on Bitcoin.
SolvBTC.AVAX: Understanding Its Functionality And Yield Mechanism
SolvBTC.AVAX consolidates a sophisticated multi-protocol yield mechanism into a single Bitcoin-based token designed to generate returns, streamlining institutional access to real-world asset exposure. The process begins with converting Bitcoin into deUSD, a stablecoin pegged 1:1 to real-world assets such as U.S. Treasuries and private credit instruments, with asset backing facilitated through Elixir and sourced from institutions like BlackRock and Hamilton Lane. This deUSD is then strategically cycled through Euler to increase RWA exposure. Risk oversight is handled by Re7, which curates and monitors the relevant Euler markets, including those for SolvBTC, deUSD, and sdeUSD on Avalanche.
Additional capital is allocated to liquidity pools managed by LFJ and Balancer, aiming to generate returns through swap fees and AVAX-based incentives. Solv automates the minting, borrowing, compounding, and distribution functions, while Avalanche serves as the underlying network to ensure efficient and low-cost transaction execution.
“Avalanche’s scalable infrastructure makes it an ideal foundation for high-throughput, modular strategies like SolvBTC.AVAX,” said Eric Kang, Head of DeFi at Ava Labs, in a written statement. “By bridging Bitcoin with real-world asset exposure through tokenized Treasuries and private credit, this integration brings new utility to BTC and marks an important step in aligning crypto with traditional financial markets,” he added.
Through the rollout of SolvBTC.AVAX, Solv Protocol is working to integrate Bitcoin with the growing real-world asset (RWA) ecosystem. This initiative includes the use of tokenized instruments like U.S. Treasuries and private credit, sourced from established institutions including BlackRock and Hamilton Lane. The goal is to position Bitcoin as a yield-generating element within the broader financial system. Built on a modular framework and supported by entities such as Elixir and Avalanche, SolvBTC.AVAX introduces a new model for delivering institution-focused infrastructure that supports RWA-based returns on Bitcoin.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
