Solv, the leader in the BTC sector, is entering RWA:
As a core infrastructure provider for the Bitcoin ecosystem (with a TVL exceeding $2.3 billion, backed by investments from Binance Labs, OKX, and others), Solv Protocol recently launched an innovative product, SolvBTC.AVAX, which combines Bitcoin with tokenized real-world assets (RWA). Users can automatically allocate traditional low-risk assets such as US Treasury bonds and private credit by depositing BTC.b or SolvBTC, with returns paid in BTC. This marks a key transformation for Bitcoin from 'store of value' to 'productive asset,' providing new pathways for the industry to explore sustainable revenue models.
RWA market explosion: Institutions will enter in large numbers driving scalability, and the current total value of RWA on-chain has surpassed 20 billion USD, with private credit and US Treasury bonds becoming the main growth drivers. Traditional institutions like BlackRock and Hamilton Lane are accelerating their layout in tokenized securities.
The core advantage of Solv lies in:
1. Transparency of underlying assets:
Achieved 1:1 asset on-chain verification through Chainlink Proof of Reserve (PoR) technology, eliminating trust barriers for institutional investors.
2. Compliance breakthrough: Launched the first BTC staking product compliant with Islamic law, certified by Amanie Advisors, tapping into the massive compliance market worth billions of dollars in the Middle East.
3. Automating returns: Integrating protocols such as Avalanche and Elixir to build modular vaults, achieving full on-chain execution of fund allocation and compound interest calculations.
Industry recommendation: Use technology to penetrate trust barriers.
Solv's practices provide three major insights for the BTC ecosystem:
1. Anchoring high-quality RWA assets: Prioritizing low-volatility assets such as US Treasury bonds and investment-grade credit to hedge against the cyclical risks of BTC, such as Solv's underlying strategy for $3 billion in tokenized assets.
2. Strengthening verifiability: Utilizing decentralized oracles (such as Chainlink PoR) for continuous auditing of reserves to address the transparency deficiencies of off-chain assets.
3. Building a compliance framework: Collaborating with traditional financial institutions (BlackRock, Hamilton Lane) to embed regulatory requirements into smart contract design, balancing innovation and compliance.
"Pure tokenization does not guarantee success; asset quality and legal certainty are the core of growth."
——Mr. Meng Yan, co-founder of Solv, stated that RWA needs to address the issues of valuation standardization and legal status to enhance liquidity. The industry’s next phase needs to focus on technological transparency and regulatory adaptability to bring trillion-dollar traditional assets on-chain and open a new world!