Main Points:
- Shariah Compliance: Solv Protocol’s new product adheres to Islamic finance principles by eliminating interest (riba), securing certification from Amanie Advisors, and partnering with Nawa Finance for regional compliance.
- Liquid Staking Token (LST): SolvBTC.CORE is a liquid staking token built on the Core blockchain, allowing BTC holders to earn yield while maintaining on‑chain liquidity.
- Institutional Focus: By aligning with both regional regulations and global financial standards, SolvBTC.CORE aims to attract Middle Eastern institutional investors, including sovereign wealth funds and traditional banks.
- DeFi Integration: Through Core’s ecosystem—encompassing lending, restaking, liquidity staking, and DEX functionality—users can put their staked Bitcoin to work across multiple DeFi applications.
- Broader Context: Solv has already deployed over $2 billion in BTC across various LST products (e.g., SolvBTC.JUP on Solana) and has raised $25 million in funding to expand its Staking Abstraction Layer (SAL).
1. The Rise of Shariah‑Compliant Crypto Products
Islamic finance prohibits the payment or receipt of interest (riba) and mandates risk‑sharing arrangements (mudarabah, musharakah). Traditional yield‑bearing crypto products often rely on interest‑like mechanisms, creating a barrier for Middle Eastern investors seeking exposure to decentralized finance (DeFi) while adhering to Shariah law. To bridge this gap, Solv Protocol partnered with Amanie Advisors for Shariah certification and collaborated with Nawa Finance—an Islamic finance specialist—to develop SolvBTC.CORE. This product eliminates conventional interest by generating returns through on‑chain activities such as transaction validation, liquidity provision, and restaking within the Core ecosystem, all structured as profit‑and‑loss sharing agreements rather than loans.
By securing external Shariah certification, Solv Protocol reassures institutional and retail investors that SolvBTC.CORE complies with Islamic jurisprudence. This validation is crucial for adoption among sovereign wealth funds, Islamic banks, and family offices in the Gulf Cooperation Council (GCC) region, where regulatory bodies are increasingly supportive of digital asset innovations that respect religious and legal frameworks.
2. How SolvBTC.CORE Works: Liquid Staking on Core
At its core, SolvBTC.CORE is a Liquid Staking Token (LST) representing a user’s staked Bitcoin. When users deposit BTC into Solv Protocol, they receive SolvBTC.CORE tokens on the Core blockchain at a 1:1 backing. These tokens remain liquid—tradable, transferable, and usable as collateral—enabling participation in DeFi while still earning yields.
- Staking & Security: Deposited BTC is subjected to a non‑custodial staking process that secures the Core blockchain. Validators, including Solv Protocol itself, validate transactions and produce blocks, earning CORE token rewards.
- On‑Chain Yield Generation: Rewards earned from staking are periodically converted into additional SolvBTC.CORE, compounding users’ holdings.
- DeFi Participation: Holders can deploy SolvBTC.CORE in Core ecosystem dApps—such as lending protocols, decentralized exchanges, and restaking services—further enhancing returns.
By leveraging Core’s EVM‑compatibility, SolvBTC.CORE integrates seamlessly with existing DeFi tooling, providing an estimated 4 % base yield with potential boost up to 10 % during promotional events like the Core Ignition Drop.
3. Institutional Appeal: Compliance and Confidence
SolvBTC.CORE’s dual compliance—regional (GCC regulations) and global (IOSCO, FATF) standards—positions it as an institutional‑grade product. Ryan Chow, Solv’s founder, emphasizes that aligning with both sets of requirements lowers barriers for government‑linked funds and traditional financial institutions to stake Bitcoin “securely and confidently.”
Moreover, Solv’s recent $11 million funding round (part of a $25 million total) led by Nomura’s Laser Digital, OKX Ventures, and Core Ventures, has bolstered its infrastructure and validator capacity, increasing trust for large‑scale participants. The addition of Solv as a Core blockchain validator further underscores its commitment to network security and decentralization.
4. Competitive Landscape: Other Shariah‑Aligned Crypto Solutions
While SolvBTC.CORE is the first Shariah‑compliant Bitcoin LST, other crypto firms have explored Islamic finance offerings:
- Yieldify: A Dubai‑based platform offering Shariah‑compliant staking for multiple assets, but limited in network integrations and institutional backing.
- BeOne: Focuses on tokenized sukuk issuance on Ethereum, demonstrating demand for Islamic bond products in crypto.
- Simply Bond: Provides halal yield via tokenized real‑world assets but lacks the liquid staking model that SolvBTC.CORE offers.
Compared to these, SolvBTC.CORE’s sustainable yield mechanism, deep DeFi integration, and strong validator ecosystem on Core give it a competitive edge in serving both retail and institutional Shariah investors.
5. Solv’s Broader Staking Abstraction Layer (SAL) Strategy
Solv Protocol’s Staking Abstraction Layer (SAL) aims to bring Bitcoin yields to multiple blockchain ecosystems. Beyond SolvBTC.CORE on Core, Solv has launched:
- SolvBTC.JUP on Solana (12 % delta‑neutral returns via Jupiter LP pools)
- SolvBTC.ENA on Ethena (basis trading yields)
- Upcoming LSTs on Avalanche, Polkadot, and other EVM‑compatible chains
This multi‑chain approach unlocks over $1 trillion of idle Bitcoin, democratizing access to DeFi yields across ecosystems. As Solv rolls out token sales for its native SOLV governance token in Q1–Q3 2025, funding will further expand SAL’s reach and reserve capacity.
6. Market Impact and Future Outlook
The Middle East represents a $5 trillion+ pool of investable assets, with digital asset adoption on the rise. SolvBTC.CORE’s Shariah compliance can catalyze institutional inflows into BTC staking, diversifying portfolios beyond conventional sukuk and equities. As regulators in the UAE and Saudi Arabia clarify crypto frameworks, products like SolvBTC.CORE can set benchmarks for compliant DeFi innovations.
Challenges remain—price volatility, smart contract risks, and evolving regulatory landscapes. However, Solv Protocol’s robust validator network, asset classification transparency, and ongoing partnerships (e.g., custody provider Ceffu) strengthen its risk management posture.
Conclusion
SolvBTC.CORE represents a pioneering fusion of Bitcoin’s security and DeFi’s yield potential with Islamic finance principles. By offering a Shariah‑certified liquid staking token on the Core blockchain, Solv Protocol opens new horizons for Middle Eastern and global investors seeking halal crypto yields. Coupled with Solv’s expanding SAL strategy and institutional alliances, SolvBTC.CORE may well accelerate the next wave of digital asset adoption in compliance‑focused markets, forging a path where faith and finance converge on the blockchain.
