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Chainlink Proof of Reserve Powers Transparent Bitcoin Yield on Solv Protocol

As institutional demand for BTCFi and tokenized credit grows, PoR ensures that each token is fully collateralized, enabling sovereign wealth funds, Shariah-compliant investors, and traditional capital allocators to trust Solv's offerings.

Soumen Datta
May 27, 2025
Solv Protocol announced a major upgrade to its platform by integrating Chainlink’s Proof of Reserve (PoR) technology. The integration aims to provide institutional investors with transparent, real-time verification of asset backing for Solv’s Bitcoin and real-world asset (RWA) yield products.

Real-Time Verification
Solv’s integration with Chainlink PoR brings on-chain validation that verifies assets backing Solv’s tokens are held at a 1:1 ratio. This applies to Solv’s three main offerings: the core Solv Protocol, SolvBTC, and xSolvBTC.
With Chainlink’s decentralized oracle network providing constant proof of reserves, institutions and sovereign investors can now deploy capital into BTC-focused yield products and tokenized credit instruments with far greater confidence. The system removes reliance on periodic audits or opaque third-party attestations, replacing them with automated, cryptographic proof accessible to anyone on-chain.
Why Institutional Investors Need Verifiable Proof of Reserves
Institutional capital—sovereign wealth funds, and family offices demands rigorous safeguards before committing to crypto assets. These investors control trillions of dollars and increasingly seek exposure to Bitcoin yields and real-world asset-backed token products.
Solv’s infrastructure bridges traditional finance and crypto by enabling Bitcoin yield strategies backed by tangible financial instruments, such as U.S. Treasuries and short-term credit products. Chainlink’s PoR ensures that these tokenized assets are fully collateralized and transparently verifiable in near real-time across multiple blockchains.
This transparency is a prerequisite for onboarding large institutional players who require clear audit trails and compliance with regulatory standards. According to Solv Protocol, for Shariah-compliant funds, which follow strict ethical and financial principles, Solv’s partnership
How Chainlink Proof of Reserve Works with Solv Protocol
The integration deploys three separate Chainlink PoR feeds that monitor asset backing for each Solv product. The feeds cover:
Each feed operates continuously, ensuring every token in circulation is at least fully backed by corresponding Bitcoin or real-world asset vaults. This is a major improvement over traditional audits, which are periodic and offer only snapshots of reserves.
Additionally, Chainlink’s Secure Mint mechanism protects Solv’s tokens against inflation risks by allowing new tokens to be minted only if cryptographic proof of reserves exists. This guards against infinite minting attacks and ensures supply remains strictly collateralized.
Institutional-Grade BTCFi and RWA Yield Infrastructure
Solv’s ecosystem offers institutional-grade solutions for Bitcoin yield strategies combined with tokenized real-world credit exposure. SolvBTC is supported by professional custody providers and operates on the Solana blockchain with bridges to Ethereum. Meanwhile, xSolvBTC provides exposure to real-world credit assets through Avalanche and partners like Ozean.
This architecture unlocks yield on Bitcoin not by relying solely on crypto-native protocols but by linking returns to creditworthy real-world financial instruments. The result is capital-efficient, transparent BTCFi products that meet institutional compliance standards.
Chainlink PoR verification is the backbone ensuring asset backing across all these products, enabling continuous auditability and reducing counterparty risks.
Shariah-Compliant BTC Yield Opens New Markets
One of Solv’s notable recent launches is the first Shariah-compliant BTC staking product, certified by Amanie Advisors, according to Solv Protocol. This certification is significant for funds in the Middle East and other regions adhering to Islamic finance principles. Trusted firms like Franklin Templeton, Daman Investments, and Nomura have shown interest in such products.
Middle Eastern sovereign wealth funds, controlling trillions of dollars, have begun allocating to BTC ETFs. With Chainlink PoR-enhanced transparency, Solv’s Shariah-certified BTC yield product can tap into this $5 trillion market opportunity. The on-chain visibility and independent attestation alleviate concerns about asset backing, making it easier for compliant and conventional capital allocators alike to participate.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
Author

Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
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