Kava is staying true to their commitment of helping as many crypto enthusiasts as possible in different parts of the world to enjoy the best possible experience with the launch of the Kava 5.1. In a related development, Kava now enables institutions to earn up to 45% APR on Bitcoin holdings without being exposed to counterparty risk. The Kava 5.1 offers an optimized baselayer infrastructure as well as an upgrade to its borrow side functionality.
“As more enterprises and financial institutions adopt bitcoin and cryptocurrencies, the more valuable the Kava DeFi platform will become as it enables this new wave of financially minded users with a way to finally put their assets to work and make Bitcoin and other cryptos into a cash-flowing asset on their balance sheets.” – Brian Kerr, CEO of Kava Labs.
The world of cryptocurrency has evolved over the years, with its features attracting millions of people from different parts of the world. In a similar vein, Bitcoin and other forms of crypto have enabled users to take control of funds by eliminating banks and middlemen. Unfortunately, the great power in the hands of people comes with responsibility, which is where the Kava platform is particularly helpful.
Institutional investors have been paying increasing attention to Bitcoin in recent months, with the growing number of publicly traded companies having a Bitcoin treasury providing a strong indication of things to come.
Bitcoin Attracts The Attention Of Institutional Investors
Bitcoin has witnessed a surge in interest from institutional investors. In addition to the price hype, institutional investors seeking exposure to the world’s leading cryptocurrency is major news in the digital currency world. Companies have opted for the purchase of Bitcoin as part of their treasury as opposed to buying future contracts. The likes of MicroStrategy, Tesla, and Meitu have come out to support their decision, despite the volatility of Bitcoin and the crypto market.
The major concern at the moment is what the future holds for Bitcoin and the digital currency world. While it has taken years to get these companies’ attention, there are still few reasons besides the speculative asset to ensure they hold onto their BTC portfolio for a while.
Institutional-Grade Borrowing
One of the most prominent features of the Kava 5.1 is the updated HARD protocol. The functionality will particularly appeal to institutional players, especially businesses that use current Bitcoin holdings as collateral for loans. The upgrade provides borrowing with variable interest rates and HARD tokens’ distribution to suppliers and borrowers alike. Kava also provides a significant passive income stream that institutions can explore by turning their Bitcoin into a cash-flow asset.
The option of lending and borrowing is an increasingly popular aspect of decentralized finance. However, Bitcoin’s role in DeFi remains minimal, as few protocols support the world’s leading currency in its native form, requiring users to convert their holdings to a tokenized or wrapped version. Protocols that support Bitcoin natively can benefit from the growing interest in cryptocurrencies by institutional investors.
The demand for Bitcoin-oriented DeFi solutions is expected to grow as the crypto world experiences the influx of more players. However, catering to the needs of institutional-grade players is the next order of business, which requires solutions providers to offer compelling options.
For more information about Kava 5.1 and other solutions from the company, please visit – www.Kava.io.
