Web3 gaming leader Animoca Brands has joined forces with decentralized finance platform Solv Protocol to assist significant Bitcoin holders in Japan in generating returns from their assets.
The collaboration seeks to merge Solv’s infrastructure with Animoca Brands’ institutional network to target corporations and public entities with substantial Bitcoin (BTC) treasuries, as stated in a release shared with Cointelegraph on Wednesday.
Kensuke Amo, CEO of Animoca Brands Japan, mentioned that while most companies typically hold Bitcoin, this new partnership with Solv is set to change that landscape.
“Our collaboration aims to build an environment where companies can not only hold Bitcoin as a financial asset but also utilize it as a distinct revenue generator that fosters corporate growth,” he stated.
Traditionally, Bitcoin does not generate yields since holding it in a wallet does not accrue interest, dividends, or staking rewards; it necessitates an external system, like lending or locking.
Solv provides Bitcoin yield ranging from 4% to 12%
The new initiative will leverage Solv’s Bitcoin-backed wrapper, allowing treasury firms to attain an annual percentage yield between 4% and 12%.
According to its white paper, Solv generates Bitcoin yield via lending markets, liquidity provision to AMM pools, and engagement in structured staking programs, as stated.
Ryan Chow, co-founder and CEO of SOLV, expressed that his protocol has demonstrated “Bitcoin can function as productive capital,” and the next growth phase will focus on “providing secure, compliant, and high-yield treasury solutions to Japan’s most innovative corporations.”
Related: Metaplanet eyes $135M raise via new Class B shares to fuel more Bitcoin purchases
SOLV is supported by investors like Binance Labs and Blockchain Capital, managing over $2.8 billion in assets, as per the company.
Metaplanet possesses the largest Bitcoin treasury in Japan
There are 11 publicly listed companies in Japan that hold Bitcoin on their balance sheets, according to Bitbo. The leading company in Japan, and the fourth-largest globally, is Metaplanet, which holds approximately 30,823 coins.
Following Metaplanet is Nexon, a South Korean video game firm headquartered in Japan, which holds 1,117 Bitcoin. The third spot is occupied by consulting services provider Remixpoint with 1,273 Bitcoin.
Additionally, only one private Japanese entity possesses Bitcoin: Mt. Gox, the defunct exchange that still retains over 34,000 tokens despite its bankruptcy in 2014.
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