TL;DR:
- Solv Protocol launched BTC+, a structured yield vault aggregating strategies across DeFi, CeFi & TradFi (including BlackRock’s BUIDL) to generate returns on idle institutional Bitcoin.
- The vault features Chainlink PoR verification, NAV-based drawdown safeguards, and a dual-layer architecture separating custody from yield generation for enhanced security.
- Intense competition heats up as Coinbase and XBTO also target institutional Bitcoin yield, driven by surging demand post-ETF approval and Bitcoin’s $2.5T market cap.
Bitcoin holders sitting on over $1 trillion in idle BTC now have a sophisticated new option for generating yield. Solv Protocol, a staking platform focused on Bitcoin, has introduced BTC+, a high-quality yield vault aimed at generating returns from inactive Bitcoin assets.
This structured product aggregates and deploys capital across diverse yield-generating strategies spanning decentralized finance (DeFi), centralized finance (CeFi), and traditional finance (TradFi) markets, the company announced Thursday.
🧵1/ Introducing the BTC+ Vault, where your BTC doesn’t just sit… it stacks.
Earn real, BTC-denominated yield — early depositors get boosted up to 99.99%.
Yes, 99.9%. No typo.
Deposit now: https://t.co/y6uudjAZXA
Let’s break it down 👇 pic.twitter.com/RuQVmebK2m
— Solv Protocol (@SolvProtocol) August 1, 2025
Aggregating Diverse Yield Strategies
BTC+ aims to capture returns from multiple avenues. Strategies involve protocol staking, basis arbitrage chances, and importantly, returns from tokenized real-world assets (RWAs). A key inclusion is exposure to yields from BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), a major player in the tokenized asset space.
This multi-faceted approach seeks to provide consistent returns by tapping into various segments of the crypto and traditional financial ecosystems, moving beyond simple staking or lending.
Institutional-Grade Security Architecture
Security for the vault is paramount. Solv integrates Chainlink‘s Proof-of-Reserves (PoR) technology for on-chain verification of holdings, ensuring transparency. Crucially, BTC+ employs a “dual-layer architecture” that fundamentally separates the custody of the underlying Bitcoin from the execution of the yield strategies, mitigating counterparty risk.
Further protection comes from drawdown safeguards based on Net Asset Value (NAV), a sophisticated risk management feature commonly utilized by limited partners in private equity.
Rising Competition for Bitcoin Yield
Solv enters a rapidly expanding institutional Bitcoin yield market. In April, Coinbase introduced a specific Bitcoin yield fund for institutions outside the US, aiming for returns of up to 8% through cash-and-carry arbitrage. At the same time, crypto investment company XBTO teamed up with Arab Bank Switzerland to create a yield product that earns returns by selling Bitcoin options to gather premiums, targeting an annualized return of 5%. Solv’s $2 billion on-chain TVL positions it as a significant contender in this burgeoning space.
Meeting Surging Institutional Demand
This focus on Bitcoin yield aligns with the asset’s dramatic institutionalization following the landmark US approval of spot Bitcoin ETFs in January 2024. Bitcoin’s price has surged over 156% since, pushing its market cap near $2.5 trillion. “Bitcoin is one of the world’s most powerful forms of collateral, but its yield potential has remained underutilized,” stated Ryan Chow, Solv’s co-founder.
