Solv makes money with Bitcoin via lending it out, providing liquidity to automated market maker pools, and participating in structured staking schemes. Animoca Brands, a big player in Web3 gaming, has teamed up with Solv Protocol, a decentralized finance platform, to assist people in Japan who own a lot of Bitcoin in making money from it.
The goal of the cooperation is to combine Solv’s infrastructure with Animoca Brands’ institutional network to go after companies and listed entities that have big Bitcoin (BTC$92,620) treasuries. Most companies merely keep Bitcoin, but the new partnership with Solv wants to alter that.
This partnership will allow businesses to hold and use Bitcoin as a new source of income that helps them grow. Holding Bitcoin in a wallet doesn’t earn interest, dividends, or staking incentives like other assets do. Instead, it needs an outside system, like lending or locking.
Unlocking returns on corporate Bitcoin
The new business will use Solv’s global Bitcoin-backed wrapper, which will allow treasury firms to earn between 4% and 12% of their money each year. According to its white paper, Solv makes money by lending Bitcoin, providing liquidity to AMM pools, and participating in structured staking schemes.
Ryan Chow, the co-founder and CEO of SOLV, said that his protocol has shown that “Bitcoin can serve as productive capital.” The next step in the company’s growth will be to “deliver secure, compliant, and high-yield treasury solutions to Japan’s most forward-thinking companies.”
The company reports that investors such as Binance Labs and Blockchain Capital support SOLV, which manages over $2.8 billion in assets.
Top Japanese firms holding Bitcoin
Bitbo reports that 11 public corporations in Japan hold Bitcoin on their balance sheets. With almost 30,823 coins on its balance sheet, Metaplanet is the largest firm in Japan that owns Bitcoin and the fourth-largest company in the world that owns Bitcoin.
Next in line is Nexon, a South Korean video game producer based in Japan. The company currently holds 1,117 Bitcoin. Remixpoint, a consultancy services company, ranks third, holding 1,273. The only private Japanese corporation with Bitcoin is Mt. Gox, a failed exchange that went bankrupt in 2014 but still holds over 34,000 tokens.