The move is part of MonkeDAO's Strategic Monke Reserve (SMR), which focuses on ensuring the sustainability of their project's funds.

The zBTC token, launched by the APOLLO team, seeks to unlock the underutilized liquidity of Bitcoin, tapping into the vast value of 'trillions' on the Bitcoin network.

By unlocking Bitcoin for decentralized finance (DeFi) through initiatives like MonkeDAO, there is potential to revolutionize the ecosystem, as trillions of dollars worth of Bitcoin are currently locked up.

MonkeDAO's strategy facilitates native Bitcoin liquidity within Solana, offering lower fees and faster transactions compared to Ethereum-based solutions like Wrapped Bitcoin (WBTC).

By holding Bitcoin reserves, MonkeDAO aims to mitigate the volatility risk associated with its treasury, which is primarily in SOL, thereby improving financial resilience during market downturns.

The implementation of a simple payment verification sidechain supports the zBTC token, marking a significant step in integrating Bitcoin with the Solana ecosystem.

This strategic acquisition aims to diversify and strengthen MonkeDAO's treasury reserves, enhancing their current pool of native assets.

The security of zBTC is ensured through a trustless two-way peg and decentralized validators on the Zeus Network, which validated its first Bitcoin transaction on Solana in December 2024.

MonkeDAO, a community-owned NFT project on Solana, has made headlines as the first decentralized autonomous organization (DAO) to adopt a Bitcoin reserve by acquiring the token zBTC.

Designed as a 1:1 equivalent of Bitcoin, zBTC provides on-chain access to Bitcoin without the need for bridging or wrapping, enabling holders to earn on-chain yields in the DeFi space.

This initiative underscores MonkeDAO's commitment to fostering a permissionless ecosystem for Bitcoin DeFi (BTCFi), allowing Bitcoin holders to engage in lending, borrowing, and yield farming activities on Solana.

MonkeDAO's move reflects a growing confidence in Bitcoin-backed reserves, although it is not as extensive as the strategy employed by MicroStrategy.