Solana Takes Action: Crypto Firms Go Beyond Passive Holdings

Solana Reserves Begin Active Engagement on Blockchain

DeFi Development Corp has announced a collaboration with Hylo, a native protocol operating within the Solana ecosystem. Through this agreement, a portion of the company’s Solana assets will be used in on-chain yield strategies. The management emphasizes controlling the utilization of reserves, positioning it as a model that contributes to financing the company’s daily operations rather than leaving the assets dormant.

The decision follows Hylo’s rapid growth, having accumulated over $100 million in Total Value Locked (TVL) within just four months and generating more than $6 million in annualized fee income on the Solana network. The company’s leadership views this performance as a tangible indicator of the sustainable yield potential within the Solana ecosystem.

Joseph Onorati, CEO of DeFi Development Corp, emphasized that enhancing SOL and related assets through Solana’s native yield opportunities aligns directly with their corporate strategy. The income derived from on-chain activities is intended not only to grow Solana reserves but also to support corporate obligations, including share buybacks.

Treasury Companies Move Away from Passive Crypto Strategies

The Solana-centric initiative stands out as part of a growing trend among companies managing cryptocurrency treasuries to adopt a more active approach. BitMine, centered on Ethereum, initiated staking of its ETH assets at the end of last year, quickly valuing approximately 780,000 ETH at over $2.5 billion through on-chain engagement. This model demonstrated the possibility of generating additional returns while holding long-term assets.

Similarly, Sharps Technology deployed a portion of its Solana reserves in liquid staking solutions last September. Meanwhile, Coinbase is generating regular income through staking by utilizing its ETH and SOL balances held on the platform. These practices illustrate how cryptocurrencies are evolving from being stagnant balance sheet entries to tools capable of generating cash flow.

In contrast, a different strategy emerges concerning Bitcoin. Companies like Mara Holdings and Riot Platforms leverage BTC reserves as collateral for borrowing, allowing them to secure liquidity without touching their BTC assets. This approach underscores the diversification of strategies in treasury management.

DeFi Development Corp presents its on-chain yield initiative as part of its global growth plans. In October, the company announced the launch of a new Solana treasury in Japan, named DFDV JP, following its earlier entry into the Asian market with DFDV KR in South Korea. The management categorizes these expansions under the “Treasury Acceleration Program.”