Animoca and Solv Team Up to Help Japanese Bitcoin Companies Generate Yield

Summary:
Web3 gaming leader Animoca Brands has announced a partnership with decentralized finance platform Solv Protocol. Their collaboration aims to assist large Bitcoin holders in Japan in generating yield from their holdings, moving beyond merely holding Bitcoin as a financial asset.

Key Takeaways

Animoca Brands and Solv Protocol are collaborating to provide yield options for Bitcoin holders in Japan.
The initiative targets corporations with substantial Bitcoin reserves to enhance revenue generation.
Solv’s Bitcoin-backed wrapper will offer yields ranging from 4% to 12%.
This partnership marks a shift towards utilizing Bitcoin as a productive financial asset rather than just a hold.

Animoca and Solv Team Up to Help Japanese Bitcoin Companies Generate Yield

Introduction to the Partnership

Animoca Brands, a giant in the Web3 gaming sector, has entered into a strategic partnership with the decentralized finance platform Solv Protocol. This initiative is designed to assist significant Bitcoin holders in Japan in generating yield from their investments. As stated in a release shared with Cointelegraph, the focus is on merging Solv’s innovative infrastructure with the vast institutional network of Animoca Brands to engage corporations and publicly listed entities with substantial Bitcoin holdings.

Kensuke Amo, CEO of Animoca Brands Japan, mentioned that many companies predominantly hold Bitcoin, but through this new venture with Solv Protocol, they intend to alter that approach. “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 explained.

Understanding Bitcoin Yield Options

Traditionally, Bitcoin does not generate yield because simply holding it in a wallet does not earn interest, dividends, or staking rewards. To produce yield, it typically needs to be involved in some external mechanisms like lending or being locked in smart contracts.

Solv’s Offering: Potential Yields of 4% to 12%

This new venture will leverage Solv’s universal Bitcoin-backed wrapper, allowing treasury departments to earn an annual percentage yield ranging from 4% to 12%. According to its white paper, Solv generates Bitcoin yield by participating in lending markets, providing liquidity to automated market maker (AMM) pools, and engaging in structured staking programs.

Ryan Chow, co-founder and CEO of Solv Protocol, described how their protocol has demonstrated that Bitcoin can function as productive capital. He added that the next phase involves providing secure, compliant, and high-yield treasury solutions for Japan's innovative corporate sector.

The Landscape of Bitcoin Holdings in Japan

According to Bitbo, there are 11 publicly traded companies in Japan holding Bitcoin on their balance sheets. The most significant holder is Metaplanet, boasting approximately 30,823 Bitcoin and ranking fourth overall globally.

Metaplanet Has the Largest Bitcoin Treasury in Japan
Metaplanet, based in Japan, has the fourth-largest listed Bitcoin treasury. Source: Bitbo

Following Metaplanet is Nexon, a South Korean video game developer with its headquarters in Japan, holding 1,117 Bitcoin. The third-largest holder is Remixpoint, a consulting services firm with 1,273 Bitcoin. Interestingly, the only private Japanese company with Bitcoin is Mt. Gox, the infamously collapsed exchange, which still retains over 34,000 tokens since declaring bankruptcy in 2014.

Conclusion

The collaboration between Animoca and Solv is setting the stage for a transformation in how Bitcoin is viewed and utilized in the corporate world in Japan. By enabling companies to generate yields from their Bitcoin assets, they are opening new pathways for financial growth and innovation in the ever-evolving crypto landscape.