Institutions are increasingly exploring Bitcoin Finance (BTCFi) as digital asset treasuries (DATs) face pressure to generate yield amid tightening valuations. With passive Bitcoin exposure proving insufficient, companies are adopting more sophisticated strategies to enhance returns. Anchorage Digital and Mezo have introduced a service enabling institutions to borrow against Bitcoin using the MUSD stablecoin at fixed rates, signaling early adoption in the BTCFi sector.
The BTCFi market has experienced significant growth, with total value locked (TVL) surging from $200 million to $9 billion. Despite this growth, BTCFi still represents a small fraction of the total Bitcoin supply. Future expansion is expected to be driven by regulatory clarity, improved custody solutions, and risk management frameworks tailored to institutional requirements.
Institutions Turn to BTCFi Amid Yield Pressure on Digital Asset Treasuries
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
