Web3 gaming giant Animoca Brands has partnered with decentralized finance platform Solv Protocol to help large Japanese Bitcoin holders generate income from their holdings.
According to a statement shared with Cointelegraph on Wednesday, the partnership aims to combine Solve's infrastructure with Animoca-branded institutional network to target companies and publicly traded entities that hold large amounts of Bitcoin (BTC) funds.
Kensuke Amaba, CEO of Animoca Brands Japan, said that most companies only hold Bitcoin, but the new business with Solve aims to change that.
“Through this partnership, we aim to create an environment where companies can not only hold Bitcoin as a financial asset, but also use it as a new source of revenue to drive corporate growth,” he said.
Bitcoin is not traditionally a yield-producing asset, as it does not earn interest, dividends, or staking rewards when held in a wallet. Instead, external systems such as lending and locking are required.
Solv offers Bitcoin yields between 4% and 12%
The new venture leverages Solv's Bitcoin-backed general-purpose wrapper, allowing treasury finance companies to generate annual yields of between 4% and 12%.
According to the white paper, Solv generates yield on Bitcoin through lending markets, providing liquidity to AMM pools, and participating in structured staking programs.
Ryan Chou, co-founder and CEO of SOLV, said his protocol has proven that “Bitcoin can serve as productive capital” and that the next stage of expansion will be “to provide secure, compliant, high-yield financial solutions to Japan's most forward-thinking companies.”
Related: Metaplanet considers raising $135 million through new Class B shares to fuel further Bitcoin purchases
According to the company, SOLV is backed by investors including Binance Labs and Blockchain Capital, and has over $2.8 billion in assets under management.
Metaplanet has the largest Bitcoin safe in Japan
According to Bitbo, there are 11 publicly traded companies based in Japan that hold Bitcoin on their balance sheets. The largest company holding Bitcoin, and the fourth largest company overall, is Metaplanet, which has approximately 30,823 coins on its balance sheet.
Japan-based Metaplanet holds the world's fourth-largest publicly traded Bitcoin assets. sauce: Vitobo
Next is Nexon, a South Korean video game developer headquartered in Japan that holds 1,117 Bitcoins. Rounding out the top three is consulting services firm Remixpoint.
There is only one private company with a stash of Bitcoin, Mt.Gox. Mt. Gox is a failed exchange that still holds over 34,000 tokens despite going bankrupt in 2014.
magazine: Author of the Mysterious Mr. Nakamoto — Finding Satoshi Will Damage Bitcoin
