365int
Institutional interest in yield-generating strategies for Bitcoin (BTC) is experiencing significant growth, driven by the desire to unlock liquidity without liquidating holdings. Ryan Chow, co-founder and CEO of Solv Protocol, highlighted this trend during a fireside chat at the Token2049 conference in Dubai on May 1. He noted that innovations in decentralized finance (DeFi), such as staking via proof-of-stake (PoS) protocols and delta-neutral trading strategies, have made it feasible for institutions to earn yields on their BTC assets.
Layer-1 and layer-2 advancements, including protocols like Babylon, have further facilitated these strategies by allowing BTC holders to earn yield while providing security and liquidity for PoS networks.
Lending has emerged as a dominant financial use case for BTC. Institutions often focus on Bitcoin due to its portfolio dominance and subsequently lend it out to gain liquidity without selling. Platforms like Coinbase now offer up to \$1 million in borrowing against Bitcoin, while DeFi platforms such as Aave and Compound enable instant borrowing.
Public companies are also contributing to this trend. For instance, Strategy (formerly MicroStrategy) has been instrumental in normalizing BTC as a treasury asset. According to a report by Bitwise, the amount of Bitcoin held by publicly traded companies rose by 16.1% in the first quarter of 2025, reaching around 688,000 BTC.
Looking ahead, Chow expects over 100,000 BTC to enter ecosystems like Solana, indicating a growing number of use cases for Bitcoin in DeFi. Solv Protocol has also launched Sharia-compliant Bitcoin yield products, such as SolvBTC.core, to cater to diverse institutional needs while adhering to Islamic finance principles.
\
