Web3 gaming leader Animoca Brands has teamed up with decentralized finance platform Solv Protocol to assist major Bitcoin holders in Japan in generating yield from their investments.
The collaboration seeks to merge Solv’s infrastructure with Animoca Brands’ institutional network to target corporations and publicly traded entities possessing significant Bitcoin (BTC) treasuries, according to a statement released to Cointelegraph on Wednesday.
Kensuke Amo, CEO of Animoca Brands Japan, noted that while most companies simply hold Bitcoin, this new endeavor with Solv aims to change that dynamic.
“Through this collaboration, we aim to foster an environment where companies can not only hold Bitcoin as a financial asset but also utilize it as a new revenue source that propels corporate growth,” he explained.
Historically, Bitcoin is not a yield-generating asset since keeping it in a wallet does not yield interest, dividends, or staking rewards; rather, it necessitates an external mechanism, like lending or locking it up.
Solv offers Bitcoin yield between 4% and 12%
This new initiative will employ Solv’s universal Bitcoin-backed wrapper, allowing treasury firms to achieve an annual percentage yield ranging from 4% to 12%.
Solv generates Bitcoin yield via lending markets, liquidity provision to AMM pools, and involvement in structured staking programs, as detailed in its white paper.
Ryan Chow, co-founder and CEO of SOLV, stated that his protocol has demonstrated that “Bitcoin can serve as productive capital,” and the next phase of growth will focus on “providing secure, compliant, and high-yield treasury solutions to Japan’s most innovative corporations.”
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SOLV is supported by investors such as Binance Labs and Blockchain Capital and manages over $2.8 billion in assets, according to the company.
Metaplanet holds the largest Bitcoin treasury in Japan
According to Bitbo, there are 11 publicly traded companies in Japan that hold Bitcoin on their balance sheets. The leading company in this regard is Metaplanet, which holds approximately 30,823 coins on its balance sheet, making it the fourth-largest holder overall.
Next is Nexon, a South Korean video game developer headquartered in Japan, holding 1,117 Bitcoin. The top three is completed by consulting firm Remixpoint with 1,273.
Only one private Japanese company possesses Bitcoin in its assets: Mt. Gox, the failed exchange that still retains over 34,000 tokens despite declaring bankruptcy in 2014.
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