Bitcoin Enters a New Era as Institutions Turn to Yield

Bitcoin Enters a New Era as Institutions Turn to Yield

Dubai, May 1, 2025 — Bitcoin is no longer just a speculative asset or a digital gold reserve. It’s becoming a strategic yield-generating instrument for institutional investors.

At the Token2049 conference in Dubai, Ryan Chow, CEO and co-founder of Solv Protocol, shared that institutional interest in Bitcoin yield strategies has exploded in recent years. Companies are no longer content with simply holding BTC. Instead, they are deploying it in decentralized finance (DeFi) ecosystems to unlock liquidity, avoid liquidation, and remain compliant with regulatory and cultural standards.

From Digital Gold to Yield Engine

According to Chow, the yield landscape around Bitcoin has changed dramatically. Where once it was difficult or impossible to generate returns on BTC, new infrastructure has opened the door to high-level strategies:

• Delta-neutral trading

• Lending protocols

• Staking via Layer-1 and Layer-2 networks

Platforms like Babylon now let BTC holders stake their assets to secure proof-of-stake (PoS) networks, generating passive income without giving up ownership.

“Bitcoin as the largest asset class here, you can stake your Bitcoin to secure the network,” said Chow. “That gives Bitcoin both utility and a new use case.”

Lending Leads Bitcoin’s Financial Integration

The most popular institutional use case is lending. Chow explained that institutions entering crypto typically start with Bitcoin, then leverage it as collateral. Instead of selling BTC, they borrow against it, unlocking liquidity while retaining price exposure.

Major players like Coinbase now allow institutions to borrow up to $1 million using Bitcoin. DeFi platforms such as Aave and Compound offer instant crypto-backed loans.

Chow praised firms like Strategy (formerly MicroStrategy) for showcasing BTC’s potential as a treasury tool. “MSTR is a very successful derivatives kind of use case based on Bitcoin,” he said.

Bitcoin on Corporate Balance Sheets Rises 16%

Institutional accumulation is not just anecdotal. In April, Bitwise released a report revealing:

• Bitcoin held by public companies grew by 16.1% in Q1 2025

• Holdings surged to 688,000 BTC

• Total value hit $56.7 billion with BTC priced at $82,445

• Firms added 95,431 BTC in just three months

Chow projected that over 100,000 BTC could flow into newer ecosystems like Solana, as more projects enable Bitcoin staking and other yield models.

Sharia-Compliant Yield Products Expand BTC’s Reach

In a nod to global compliance and cultural sensitivity, Solv Protocol recently launched SolvBTC.core, a Sharia-compliant yield product. The product enables users to earn yield by securing the Core blockchain and participating in DeFi, all while adhering to Islamic finance principles.

“Sharia compliance is something that we prepared for a long time,” said Chow. “You have to pass it before you really serve them through your platform.”

Currently, over 25,000 BTC — valued at more than $2 billion — is locked in Solv’s protocol. The firm is now focused on building infrastructure tailored to institutional needs, including compliance, security, and cultural adaptation.

Looking Ahead: BTC as a Yield Backbone for DeFi

As BTC continues to gain acceptance among institutions, its transformation from a passive asset to a productive one could redefine crypto finance. With regulatory-compliant, culturally sensitive solutions now available, Bitcoin’s integration into mainstream finance appears to be not just possible — but inevitable.