Recently, many in the crypto community who were previously unaware of RWA have started to hear about this sector, as last week the first listed company in the RWA stablecoin sector, Circle, completed its IPO, with its stock price rising from an initial estimate of $30 to $50, and closing at $83 on its first day of trading, surging past $100 the following day. This has allowed many traditional institutions and capital to further recognize the stablecoins in the crypto domain and the RWA sector that links traditional and crypto worlds.
Recently, Solv has launched a product linking traditional and crypto industry innovations, tying Bitcoin to physical assets, namely SOVLBTC-AVAX. #BTC赛道龙头Solv进军RWA
Solv itself is already considered a leading product in the Bitcoin sector. From its inception, it has been associated with many top-tier investment institutions, such as Binance Labs, Blockchain Capital, and others. Over the past five years of development, its on-chain locked value has exceeded $2 billion, with more than 17,000 Bitcoins under custody, and the number of users has surpassed 1.1 million.
Now, the launch of this RWA Bitcoin yield product will undoubtedly further consolidate its leading position in the Bitcoin sector.
SOLVBTC-AVAX, from its name, at least conveys two pieces of information: one is BTC, meaning this product is related to financial applications of BTC; the other is AVAX, indicating it is supported by Avalanche as the underlying blockchain technology. So how exactly is it implemented?
First, there is a stablecoin medium, DEUSD. This stablecoin is backed by U.S. Treasury assets managed by world asset management giants like BlackRock and Hamilton, providing exposure to real assets. On one hand, DEUSD successfully brings traditional assets into the crypto space; on the other hand, we can see the strong backing of this stablecoin, which can achieve value anchoring.
Secondly, in the crypto space, there is the stablecoin DEUSD. This is what Solv is offering: after holding BTC, users can mint SOLVBTC-AVAX on Solv, which means holding SOLVBTC-AVAX equates to holding DEUSD, allowing them to earn returns related to DEUSD's stablecoin, as well as liquidity returns on LFJ and Balancer. Moreover, these returns can be distributed in the form of BTC.
Through this cycle, users holding BTC essentially hold an RWA stablecoin, equivalent to holding traditional assets like U.S. Treasury bonds, while also earning returns on each asset. The design of SOLVBTC-AVAX breaks through the limitations of traditional Bitcoin yield products, not relying solely on staking or lending, or price fluctuations for returns, but enjoying such compound returns. It also does not require active management of complex cross-chain operations; users only need to mint BTC into SOLVBTC-AVAX on Solv, and leave the rest to Solv.
Solv's foray into RWA establishes a bridge for Bitcoin holders to access assets from traditional financial giants, notably BlackRock, which is trusted by global investment institutions. The launch of this RWA product can be seen as Solv's significant breakthrough in both the Bitcoin and RWA sectors. Solv closely links traditional and crypto worlds, connecting the trillion-dollar sectors of Bitcoin and RWA, marking a milestone that will surely propel Solv towards a stronger leading position.