Victoria d’Este
Printed: Might 19, 2025 at 4:07 pm Up to date: Might 19, 2025 at 4:13 pm
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Might 19, 2025 at 4:07 pm
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What occurs when Bitcoin meets real-world finance? Jing Xiong of Solv Protocol shares how BTCfi, RWAs, and institutional-grade infrastructure may rework Bitcoin from a passive asset into the spine of decentralized finance.
What occurs when the world’s most acknowledged crypto asset meets the trillion-dollar potential of real-world finance? Can Bitcoin evolve from a passive retailer of worth into the muse of a brand new decentralized monetary system?
On this interview, we sit down with Jing Xiong, Co-Founder and Chief Enterprise Officer at Solv Protocol, to discover the rise of BTCfi (Bitcoin DeFi), the strategic function of RWAs, and the way Solv Protocol is constructing the institutional-grade infrastructure to unlock Bitcoin’s untapped potential.
Are you able to share your journey to Web3?
Earlier than coming into the crypto and Web3 area—and earlier than founding Solv Protocol—most of my profession was in conventional finance. My background targeted largely on TradFi merchandise, structured merchandise, choices, and buying and selling. That was the core of what I did earlier than making the shift into crypto.
How do you outline BTCfi, and why do you assume that is the best time to carry RWAs into the Bitcoin ecosystem?
That’s an excellent query for a number of causes. First, Bitcoin is more and more being acknowledged past the boundaries of crypto. We noticed this start with ETFs, and now there’s speak about stablecoin laws. You’re seeing its adoption unfold into extra areas of conventional finance infrastructure. As an asset class, Bitcoin is turning into extra essential and extra built-in.
After we speak about BTCfi—or Bitcoin Finance—we’re actually speaking about constructing monetary infrastructure round Bitcoin. That may imply bringing TradFi nearer to DeFi or integrating Bitcoin extra deeply into the standard banking system. As for RWAs, crypto immediately has a market cap of roughly one to 2 trillion {dollars}. Actual-world belongings supply the potential to usher in many extra trillions of {dollars} into this area, leveraging the infrastructure we’ve constructed over time.
So why now? As a result of adoption is rising, demand for returns is growing, and the area is turning into extra subtle. I consider there’s no higher time than now.
What strategic hole does Solv Protocol purpose to fill within the BTCFi ecosystem?
That’s one thing we’ve considered deeply. Bitcoin has historically been a retailer of worth. Most holders hold their BTC in custody options—chilly wallets or exchanges—with out actually utilizing it. However on condition that Bitcoin is the face of crypto, we consider it’s too essential to stay idle. It ought to have utility and productiveness. Solv Protocol goals to enhance the effectiveness of BTC by integrating it extra absolutely with on-chain infrastructure.
We’ve seen how productive ETH has turn into via the Ethereum ecosystem and L2s. We see no purpose why BTC, being the dominant crypto asset, shouldn’t attain or surpass that degree of usability.
In your view, what’s lacking from present RWA options in crypto, and the way does Solv Protocol’s new product purpose to alter that?
Many present RWA merchandise stream in only one path: they create off-chain belongings like treasury payments, cash market funds, and credit score merchandise on-chain. And whereas these belongings are priceless, they’re focused at an on-chain viewers that usually has decrease buying energy.
What we’re doing at Solv Protocol additionally seems on the reverse stream—exporting on-chain alternatives to capital exterior the crypto ecosystem, the place trillions of {dollars} are sitting. That’s a significant focus for us.
A concrete instance is our product, BTC.CORE. It permits customers to stake their BTC on-chain and earn sturdy returns. We’ve additionally labored on getting such merchandise via monetary limitations. For instance, within the Center East, we just lately acquired Sharia compliance for this product after six months of labor. The aim is broader adoption—bringing these choices to customers exterior the present crypto-native base.
Inform us extra in regards to the core mechanics of Solv Protocol’s institutional-grade RWA yield product. What makes it completely different?
After we speak about “institutional-grade,” it means belongings aren’t hosted in scorching wallets however saved in certified, regulated custody options. These differ throughout areas—for instance, in Korea, there are only some regulated custodians, whereas the U.S. has many extra.
Moreover, good contract transparency and governance have gotten more and more essential. Establishments are actually extremely targeted on correct execution and compliance, performed proper and tailor-made to every area’s regulatory panorama. So our method is to mix regulated custody, good contracts, and geographic-specific compliance to satisfy institutional requirements.
Why did you select BTC as the first asset to wrap this yield product?
We consider BTC is among the most underutilized but most essential belongings within the area. Due to its significance and the truth that it’s not being absolutely used, we noticed a chance. BTC holders ought to be capable to generate extra returns based mostly on their danger urge for food, and we consider there’s sturdy product-market match right here.
Who is that this product actually for—establishments, whales, or superior retail?
From our expertise, it caters to a variety of customers. Our platform goals to generate returns for all BTC holders. Some merchandise supply decrease danger and decrease returns, whereas others are increased danger and doubtlessly supply increased returns.
Institutional customers, coping with giant capital swimming pools, usually desire easy, lower-risk choices with modest yields. Retail customers, however, are likely to have increased danger appetites and are extra open to exploring new merchandise and chains. We admire this combine—it permits us to check, adapt, and fine-tune choices for various segments.
Do you anticipate this undertaking turning into a brand new benchmark for BTC-based DeFi yield?
Sure, I undoubtedly hope so. We’ve been engaged on this for over two years. It’s encouraging to see it turning into high of thoughts for a lot of customers. Our hope is that it good points extensive adoption throughout each retail and institutional audiences and that it turns into a benchmark within the area for BTC-based DeFi yield merchandise.
What has been the most important hurdle in aligning the wants of BTC holders with real-world yield markets?
To me, BTC is like digital gold—most holders don’t wish to promote it or actively use it. On the identical time, most RWA merchandise require fiat or stablecoins. So the problem turns into: how can BTC holders entry RWA merchandise and yields with out promoting their BTC?
We’re engaged on options that permit diversification, beginning with BTC holdings. There’s clear demand and curiosity from customers who need publicity to RWAs, and our job is to construct the pathways that permit them to try this straight with BTC.
How does this product match into Solv Protocol’s 12-month roadmap? Is it the primary of a number of institutional choices?
Completely. What we’re seeing is that customers have gotten extra savvy and extra fascinated by new yield merchandise. Schooling and familiarity are rising. Our focus is on creating choices that meet these evolving wants. That is the primary of many institutional-grade merchandise we plan to launch within the coming months.
Do you see BTCfi evolving into a significant DeFi subsector within the subsequent cycle, or does it stay extra of a distinct segment play for now?
I consider BTCfi will turn into a mainstream pillar of DeFi. ETH has lengthy been the bedrock of DeFi, however given Bitcoin’s significance, I don’t see why it ought to proceed enjoying second fiddle. I’m very bullish that BTCfi received’t simply be a distinct segment—it is going to be one of many dominant forces shaping the way forward for decentralized finance.
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About The Writer
Victoria is a author on a wide range of expertise matters together with Web3.0, AI and cryptocurrencies. Her in depth expertise permits her to jot down insightful articles for the broader viewers.
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Victoria d’Este
Victoria is a author on a wide range of expertise matters together with Web3.0, AI and cryptocurrencies. Her in depth expertise permits her to jot down insightful articles for the broader viewers.
