Solv Protocol Dominates Bitcoin Finance on Soneium

**Alea Research has released comprehensive Q4 coverage of Solv Protocol**, highlighting the growing adoption of BTC+ as a streamlined Bitcoin yield platform. **Key developments include:** - Launch of Bitcoin-backed RWA Vault in partnership with Binance and BNB Chain, featuring Circle's USYC as underlying product - $6.5M in institutional deposits within days of vault launch - Protocol fees and revenue growth despite market volatility and DeFi exploit concerns - Integration with Anchorage Digital's institutional custody platform for compliant SolvBTC operations - Real-time data dashboards via Token Terminal showing Solv ranked 2nd in weekly fees growth among liquid staking protocols The report emphasizes Solv's position as the largest onchain BTC reserve manager, focusing on sustainable yield generation through tokenized real-world assets including Treasuries and investment-grade credit. The platform addresses Bitcoin's income generation challenge while maintaining institutional-grade security and compliance standards. [Read full Q4 report](https://solv.finance)

**Solv Protocol has achieved MiCA compliance**, positioning its Bitcoin reserve for European expansion. **Key developments:** - Acquired MiCA license through Netherlands authorities - Enables operation in EU financial markets under regulatory framework - Anchors the largest on-chain BTC reserve to European regulatory standards **What this means:** The compliance marks a significant step for decentralized Bitcoin finance in Europe. Solv can now expand its Financial NFT platform—which enables trading of vesting vouchers and other tokenized assets—within EU markets under established regulatory oversight. This regulatory approval provides a foundation for institutional participation in on-chain Bitcoin products while maintaining compliance with European financial standards.

A DeFi strategy enables Bitcoin holders to earn stablecoin yields while maintaining BTC ownership through a multi-step process: **The Strategy:** - Collateralize SolvBTC on Venus Protocol to borrow $U at 0.82% - Supply $U to $U/$USDT liquidity pool on Lista DAO earning 5.74% - Borrow $USDT against LP tokens at 2.5% - Deploy $USDT either back to Venus (6.11% APY via PRIME) or Lista DAO (5.74% APY) **Net Returns:** 8.16% to 8.53% annually **Additional Incentives:** - 240K in Lista DAO rewards - Venus Protocol PRIME benefits - Exclusive Solv merchandise - $300 in $U giveaway The approach allows users to generate stablecoin income from Bitcoin without selling their holdings, combining multiple protocols for optimized yields.

**Alea Research has published a report examining Solv Protocol's asset mobility infrastructure powered by Chainlink's Cross-Chain Interoperability Protocol (CCIP).** Key findings: - Solv operates the largest onchain Bitcoin reserve with enhanced productivity - Products integrated with Chainlink CCIP have processed over $1.3B in cumulative cross-chain transfer volume - The infrastructure combines CCIP for cross-chain transfers with Chainlink Proof of Reserve for transparent asset backing **Background Context** Solv's Bitcoin Finance infrastructure received recognition in the White House Digital Assets Report (EO14178) as critical infrastructure for stablecoins, tokenized funds, and digital assets. The protocol specializes in creating Financial NFTs that represent various crypto assets, including vesting tokens and lock-up allocations. The integration demonstrates practical application of cross-chain technology for Bitcoin-based financial products, enabling asset movement across different blockchain networks while maintaining security and transparency through oracle-based verification systems. [Read the full Alea Research report](https://twitter.com/AleaResearch)

Solv Protocol has completed a major infrastructure upgrade, transitioning from SAL to **FROST Network-based architecture** for Bitcoin-compatible threshold signing. **Key Technical Changes:** - FROST multi-signatures enable distributed custody and governance - No modifications required to Bitcoin's core protocol - Institutional-grade security through threshold cryptography **Benefits of the Upgrade:** - Enhanced security through distributed control - Improved accountability and auditability - Higher execution scalability for SolvBTC - Easier integration for DeFi ecosystems The upgrade positions SolvBTC as a more resilient Bitcoin execution layer, moving beyond basic staking abstractions to provide enterprise-grade infrastructure for institutions. [Read full details](https://blockchainreporter.net/solv-drives-frost-threshold-signatures-for-bitcoin-mainnet-execution/)