The post MonkeDAO Takes Over zBTC, First Solana DAO to Have Bitcoin Reserves appeared on BitcoinEthereumNews.com.

Key Takeaways: MonkeDAO, one of the leading Solana-based decentralized autonomous organizations (DAOs), has acquired zBTC, making it the first DAO on Solana to have Bitcoin-backed reserves.  zBTC is a Bitcoin-pegged token native to Solana that allows DAOs and DeFi protocols to access Bitcoin liquidity without leaving the ecosystem. Holding Bitcoin reserves provides greater financial stability by reducing exposure to SOL’s volatility and enhancing long-term treasury resilience.  The move is consistent with the general trend of DAOs diversifying treasuries with Bitcoin-backed assets to mitigate risk and provide liquidity.  MonkeDAO’s Bitcoin Reserve Strategy In a notable change in the way that DAOs & asset management, MonkeDAO has added zBTC to its treasury. Rather than using Solana’s native coin (SOL) or stablecoins to manage its treasury, MonkeDAO is now using Bitcoin reserves to create more diversified treasury holdings & reduce volatility risk. zBTC also allows MonkeDAO to benefit from Bitcoin liquidity in Solana’s ecosystem rather than using centralized or Ethereum-focused solutions like Wrapped Bitcoin (WBTC). The addition of zBTC is a step into Solana’s vision of DeFi, where Bitcoin and similar assets can be natively used across its more general DeFi protocols. Benefits of Bitcoin Reserves for MonkeDAO Treasury Stability & Risk Reduction Price volatility of SOL represents a substantial risk to DAOs with treasuries denominated largely in ecosystem-native tokens. By hedging using Bitcoin-backed assets, MonkeDAO gives itself greater financial stability by making itself less dependent on SOL performance. Native Bitcoin Liquidity on Solana zBTC provides a decentralized solution for using Bitcoin in Solana’s DeFi, which allows MonkeDAO to trade, stake, and lend BTC without needing Ethereum-based solutions. That means lower fees and greater speed, compared to wrapped Bitcoin options like WBTC. Improved Financial Resilience Bitcoin is also the most reliable store of value in crypto. By holding BTC-backed reserves, MonkeDAO hedges for…

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Filed under: News - @ March 29, 2025 7:46 pm