Web3 gaming giant Animoca Brands has partnered with decentralized finance platform Solv Protocol to help large Bitcoin holders in Japan generate yield from their holdings.
The partnership aims to combine Solv’s infrastructure with Animoca Brands’ institutional network to target corporations and listed entities with large Bitcoin (BTC) treasuries, according to a statement shared with Cointelegraph on Wednesday.
Kensuke Amo, the CEO of Animoca Brands Japan, said that most companies only hold Bitcoin, but the new venture with Solv aims to change that.
“Through this collaboration, we aim to create an environment where companies can not only hold Bitcoin as a financial asset but also leverage it as a new revenue engine that drives corporate growth,” he said.
Bitcoin isn’t traditionally a yield-generating asset because holding it in a wallet doesn’t generate interest, dividends, or staking rewards; instead, it requires an external system, such as lending or locking.
Solv Offering Between 4% and 12% Bitcoin Yield
The new venture will utilize Solv’s universal Bitcoin-backed wrapper, enabling treasury firms to generate an annual percentage yield of between 4% and 12%.
Solv generates Bitcoin yield through lending markets, liquidity provisioning to AMM pools, and participation in structured staking programs, according to its white paper.
Ryan Chow, co-founder and CEO of SOLV, said his protocol has proven “Bitcoin can serve as productive capital,” and the next phase of expansion will be “delivering secure, compliant, and high-yield treasury solutions to Japan’s most forward-thinking corporations.”
SOLV is backed by investors including Binance Labs and Blockchain Capital, and has over $2.8 billion in managed assets, according to the company.
Metaplanet Holds Largest Japan-Based Bitcoin Treasury
There are 11 Japan-based public companies holding Bitcoin on their balance sheets, according to Bitbo. The top company holding Bitcoin, and the fourth-largest overall, is Metaplanet, with roughly 30,823 coins on its balance sheet.
Next in line is Nexon, a South Korean video game developer, which has its headquarters in Japan and holds 1,117 Bitcoin. Rounding out the top three is consulting services company Remixpoint.
Only one private company has any Bitcoin in its stash, Mt. Gox, the collapsed exchange that still holds over 34,000 tokens despite going bankrupt in 2014.