Solv Protocol has introduced a new Bitcoin-based financial product that promises to bring real-world asset (RWA) yields to Bitcoin holders through the power of decentralized finance (DeFi) and it comes with backing from some of the biggest names in traditional finance.
Unveiled under the name SolvBTC.AVAX, the token is built on the Avalanche blockchain and allows holders to earn yield backed by real-world assets such as U.S. Treasuries and private credit. The product is a collaborative effort between Solv, Avalanche, Elixir, Euler, Re7 Labs, LFJ, and Balancer, with institutional involvement from financial giants BlackRock and Hamilton Lane.
A New Frontier for Bitcoin Yield
Unlike traditional crypto yield products, SolvBTC.AVAX is designed as a structured yield-bearing token powered by the deUSD stablecoin. This stablecoin is underpinned by real assets including BlackRock-managed Treasuries and Hamilton Lane’s private credit and is integrated with Elixir, a DeFi liquidity layer.
“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.
Through Euler’s lending protocol, deUSD is used to increase the exposure to these RWAs. Meanwhile, Re7 Labs, a risk management firm, oversees market dynamics related to SolvBTC, deUSD, and its staked variant sdeUSD.
Triple-Layer Rewards and Institutional Security
Capital from the protocol is further deployed into liquidity pools on LFJ and Balancer, generating swap fees and AVAX token rewards. This system enables a triple-layer reward structure for users:
- Yield from RWAs via deUSD
- Swap and liquidity pool fees
- Incentives in AVAX and other tokens
The automated structure simplifies minting, borrowing, compounding, and rewards distribution all powered by Avalanche’s low-cost, high-speed blockchain infrastructure.
BlackRock’s Expanding DeFi Footprint
The move also coincides with the broader institutional migration into DeFi. As reported by crypto.news, BlackRock’s BUIDL tokenized money market fund is now integrated into DeFi via the Euler protocol, through sBUIDL, a 1:1 backed token issued by Securitize.
This integration reflects a growing shift where tokenized real-world assets meet DeFi protocols, creating new financial primitives that bridge the gap between traditional finance and crypto innovation.
SolvBTC.AVAX represents a bold attempt to modernize how Bitcoin holders can put their assets to work not through speculative DeFi farms, but through institutionally-backed yield mechanisms anchored in real-world financial instruments.
With firms like BlackRock and Hamilton Lane involved, and platforms like Avalanche and Euler providing technical support, this token could be a significant step in bringing Bitcoin into a more mature, regulated, and yield-generating DeFi ecosystem.
As BTCFi continues to evolve, products like SolvBTC.AVAX are setting the stage for a future where Bitcoin isn’t just a store of value it’s a productive asset.
