Function, a Bitcoin infrastructure company, has reported that its 1:1 Bitcoin-backed asset, FBTC, is now available on Solana, extending a fully collateralized Bitcoin representation to one of the industry’s highest-throughput blockchain networks. The rollout also introduces what is described as the first retail-focused Bitcoin vault on Solana, enabling users to earn yield through FBTC via Bybit’s On-Chain Earn service.
The launch is accompanied by a series of decentralized finance integrations intended to support liquidity and usability from the outset. Orca is providing swapping functionality and low-slippage trading, while Kamino is offering access to approximately $500 million in stablecoin liquidity.
“FBTC gives Bitcoin holders access to yield across Solana’s vibrant ecosystem,” said Leo Zhang, Contributor at Function, in a written statement. “This integration marks another step towards making Bitcoin more composable and functional across DeFi,” he added.
FBTC operates using LayerZero’s Omnichain Fungible Token standard, which allows it to be bridged to Solana through Stargate Finance at a guaranteed one-to-one rate, regardless of transfer size and without slippage. The asset is designed to transform idle Bitcoin into a productive on-chain instrument, with each token backed by an equivalent amount of BTC and supported by publicly verifiable reserve addresses. The structure is intended to combine Bitcoin’s security profile with the programmability of smart contracts, enabling Bitcoin-backed liquidity to participate in modern DeFi applications without compromising collateral backing.
“Function built FBTC with the transparency and institutional-grade risk standards expected from assets entering Kamino’s credit layer,” said Mark Hull, Contributor at Kamino, in a written statement. “With more than half a billion dollars in stablecoin deposits available, Kamino provides deep liquidity for FBTC holders to tap into from day one,” he added.
The broader ecosystem supporting FBTC at launch includes Solana as the host network, Orca for swapping and liquidity provision, Kamino for collateralized lending, LayerZero as the cross-chain messaging layer, Stargate as the bridging mechanism, and Bybit as the distribution channel for retail users through its Bitcoin vault offering.
“Bybit’s On-Chain Earn makes it simple for millions of Bybit users to access yield opportunities,” said Jerry Li, Head of Financial Products and Wealth Management at Bybit, in a written statement. “Through FBTC, we’re bringing together the security of Bitcoin with the efficiency of Solana’s ecosystem, giving our community the tools to make their BTC productive without sacrificing exposure to the underlying asset,” he added.
The rollout provides several entry points for users, including bridging FBTC to Solana via Stargate, using FBTC as collateral on Kamino to borrow stablecoins, and accessing curated yield strategies through Bybit’s On-Chain Earn. Together, these components are positioned as part of an effort to integrate Bitcoin more deeply into decentralized finance while maintaining full reserve backing and cross-chain functionality.
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