Binance Labs-backed Solv Protocol has successfully completed an $11 million strategic funding round to expand Bitcoin staking opportunities for investors.

The funding round saw participation from several venture capital firms, including Nomura’s Laser Digital and Blockchain Capital, bringing the total funding for the Bitcoin staking platform to $25 million. Other notable participants included gumi Cryptos Capital, OKX Ventures, and CMT Digital.

In an announcement on October 14, Solv Protocol revealed that the new fundraising was at a $200 million valuation.

Expanding Bitcoin Staking with SAL

Solv Protocol plans to utilize the capital to enhance the adoption of Bitcoin staking through the Staking Abstraction Layer (SAL). This layer allows Bitcoin holders to stake their coins across multiple protocols and chains, providing access to various staking opportunities in the decentralized finance market.

Bitcoin Staking vs. Ethereum Staking

Despite the growth in Bitcoin staking and the emergence of platforms like Solv Protocol and Babylon, the Bitcoin staking market still lags behind Ethereum’s. The Ethereum network dominates the staking ecosystem, thanks to the significant traction of platforms such as Lido and EigenLayer.

Solv Protocol aims to change this by offering new momentum and bringing Bitcoin staking opportunities to more holders. Bitcoin, the top digital asset, currently boasts a market cap exceeding $1.3 trillion.

“Bitcoin’s staking rate is currently much lower than Ethereum’s 28%. If we can unlock similar levels of participation, Bitcoin staking could unlock $330 billion in value. We believe BTCFi will drive the next wave of innovation in the blockchain space.” – Ryan Chow, co-founder and chief executive officer of Solv Protocol

As of now, SolvBTC has attracted over 20,000 Bitcoin, amounting to more than $1.3 billion in total value locked. This value is staked across 10 blockchain networks, according to Solv Protocol’s announcement.

Expansion to Ethereum Layer-2 Chain

In September, Solv Protocol expanded its Bitcoin staking service to Base, the Ethereum layer-2 chain launched by Coinbase. This expansion allowed Base users to participate in Bitcoin DeFi via the wrapped token cbBTC, which Coinbase unveiled that same month.

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