The demand for yield-generating strategies around Bitcoin (BTC) is surging, particularly from firms seeking liquidity without liquidating their BTC, according to Ryan Chow, co-founder and CEO of Solv Protocol. In a recent fireside chat at the Token2049 conference in Dubai, he highlighted that institutional interest in Bitcoin yield products has grown exponentially over the past few years.
Initially, generating Bitcoin yield was nearly impossible; however, recent innovations such as staking through proof-of-stake (PoS) protocols and delta-neutral trading strategies have changed this landscape. Advances in both layer-1 and layer-2 protocols, notably Babylon, have made these strategies more viable, enabling BTC holders to earn yield on their assets which are subsequently utilized to provide security and liquidity for PoS networks.
Chow emphasized, “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.”
Institutions tend to focus on Bitcoin when entering the crypto space due to its dominance in investment portfolios. Once purchased, many firms lend out their Bitcoin to gain liquidity without needing to sell. Platforms like Coinbase now facilitate borrowing against Bitcoin, allowing companies to secure up to $1 million, while lending protocols such as Aave and Compound provide instant borrowing solutions.
Chow also commended public companies such as Strategy (formerly MicroStrategy) for normalizing Bitcoin as a treasury asset, stating, “MSTR is a very successful derivatives kind of use case based on Bitcoin […] That’s also Bitcoin finance.” Notably, a recent report from crypto fund issuer Bitwise indicated that Bitcoin held by publicly traded companies rose 16.1% in the first quarter of 2025, reflecting a significant commitment to the asset.
As of the end of Q1 2025, Bitcoin holdings surged to approximately 688,000 BTC, with firms adding 95,431 BTC over the quarter. The total combined value of these holdings reached $56.7 billion, driven by a price surge to $82,445 per BTC.
Looking forward, Chow predicts that over 100,000 BTC will likely enter ecosystems like Solana, stating, “There should be more and more use cases come out.”
Launch of Sharia-compliant Yield Products
Additionally, Chow announced the recent launch of the Sharia-compliant Bitcoin yield product, SolvBTC.core. This innovative product generates yield by securing the Core blockchain network and engaging in on-chain DeFi activities while adhering to Islamic finance principles. He expressed that preparing for Sharia compliance has been a lengthy process, emphasizing the importance of regulatory and cultural considerations for their platform.
With more than 25,000 BTC already locked in Solv’s protocol, valued at over $2 billion, the firm is working towards building infrastructure catered to institutional needs, ensuring compliance with both regulatory standards and cultural requirements in the evolving cryptocurrency landscape.
