Partnership Between Animoca Brands and Solv Protocol
Exciting news from the world of Web3 gaming and decentralized finance (DeFi) recently caught our attention. The gaming giant known as Animoca Brands has strategically partnered with the DeFi platform, Solv Protocol. This partnership primarily aims to assist large Bitcoin holders in Japan to generate its value from their holdings. To achieve this, the collaboration will merge the sophisticated infrastructure of Solv with the extensive institutional network of Animoca Brands. The expectation is that it will attract corporations and entities with substantial Bitcoin treasuries.
Targeting Corporations and Listed Entities
The team identifies corporations and listed entities as the main targets. They believe their initiative will especially appeal to such organizations that possess large Bitcoin treasuries. On this matter, Kensuke Amo, the CEO of Animoca Brands Japan, stated in an interview that most companies only held Bitcoin. He elaborated on the objective of their project with Solv – to change this common business practice.
Amo further explained, “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.”
Generating Yield from Bitcoin
Traditionally, Bitcoin is not an asset that generates yield because keeping it in a wallet doesn’t generate interest, dividends, or staking rewards. The only way to make it a yield-generating asset is by establishing an external system like lending or locking. The team’s new venture intends to resolve this issue by utilizing Solv’s universal Bitcoin-backed wrapper. Such an approach will allow treasury firms to generate an annual percentage yield ranging from 4% to 12%.
Solv accomplishes this by lending markets, providing liquidity to automated market maker (AMM) pools, and taking part in structured staking programs. This is detailed in the company’s white paper.
Phase of Expansion and Investors
Ryan Chow, the co-founder and CEO of SOLV, expresses his confidence in the protocol. According to him, Solv has demonstrated that Bitcoin can be employed as productive capital. The company is planning their next phase of expansion, which will involve providing secure, compliant, and high-yield treasury solutions to Japan’s innovative, forward-thinking corporations.
SOLV has secured backing from reputable investors, which includes Binance Labs and Blockchain Capital. The company is currently overseeing more than $2.8 billion in managed assets.
Japanese Companies with Bitcoin Holdings
There are presently 11 public companies in Japan that carry Bitcoin in their balance sheets. Among them, the company with the largest number of Bitcoin holdings is Metaplanet. This company has about 30,823 coins. Following them is Nexon, a South Korean video game developer whose headquarters is in Japan, with 1,117 Bitcoin. After that, third place goes to the consulting services company, Remixpoint, with 1,273 Bitcoin.
The only private Japanese company known to hold Bitcoin is Mt. Gox, a collapsed exchange that still holds over 34,000 tokens, despite declaring bankruptcy in 2014. As the team behind Animoca Brands and Solv Protocol spearhead their venture, they aim to transform the way Bitcoin is used in corporations and listed entities, making it not only a store of value but a key driver of corporate growth.
