Solv Protocol has launched a yield-bearing Bitcoin token on the Avalanche blockchain, named SolvBTC.AVAX, aimed at providing institutional investors with more opportunities backed by real-world assets (RWAs). This token connects Bitcoin to assets like US Treasurys and private credit through a partnership involving multiple organizations including Solv, Avalanche, Balancer, Elixir, Euler, Re7 Labs, and Hamilton Lane. SolvBTC.AVAX utilizes a multi-protocol strategy leveraging Elixir’s deUSD stablecoin and Euler's lending platform to enhance RWA exposure. According to a spokesperson, the yield from this investment is received in Bitcoin format. Increased demand for yield solutions in Bitcoin has arisen amid rising institutional adoption and competition among platforms, which has led other firms like Coinbase to introduce yield-generating strategies. Overall, this product represents a shift in how Bitcoin can link to economic cycles using uncorrelated assets, differing from BTC's traditional market dynamics.

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