Speaking at the Bitcoin MENA event in Abu Dhabi, Michael Saylor, executive chairman of Strategy and head of the world’s largest corporate Bitcoin treasury, urged nation-states to build Bitcoin-backed digital banking systems. He said such a model could offer high-yield, low-volatility accounts capable of attracting trillions of dollars in global deposits.
Saylor explained that countries could use overcollateralized Bitcoin reserves and tokenized credit markets to create regulated digital accounts that deliver stronger returns than traditional savings products. These accounts, he argued, would be supported by a mix of Bitcoin-backed credit assets and fiat currency buffers, providing both stability and yield.
He noted that bank deposits in regions such as Japan, Europe, and Switzerland currently offer little or no return. Euro money-market funds pay around 150 basis points, while U.S. money-market rates approach 400 basis points. According to Saylor, this lack of attractive yield pushes investors toward corporate bonds — a market he believes would be far smaller if banks offered competitive returns.
Saylor outlined a potential structure in which digital credit instruments make up about 80% of a fund, combined with 20% in fiat currency and a 10% additional reserve to reduce volatility. If a regulated bank implemented such a system, Saylor said deposit flows could reach “$20 trillion or $50 trillion.”
He added that a country adopting this banking model could become “the digital banking capital of the world.”
His comments came shortly after revealing that Strategy had purchased an additional 10,624 BTC for about $962.7 million, bringing its total holdings to 660,624 BTC. The firm has spent roughly $49.35 billion on Bitcoin at an average cost of $74,696 per coin.
Testing Bitcoin-Backed Debt Products
Saylor’s proposal aligns with elements of Strategy’s own financial products. In July, the company launched STRC, a money-market-style preferred share with a variable dividend near 10%. The product is designed to stay close to par value while being backed by Strategy’s Bitcoin-linked treasury operations. STRC has already grown to a market cap of about $2.9 billion, though it has faced skepticism from some analysts.
One major concern is Bitcoin’s short-term volatility. Although Bitcoin has delivered strong long-term performance, its short-term price swings remain unpredictable. At the time of writing, BTC traded around $90,700 — down 28% from its Oct. 6 all-time high of $126,080 and about 9% lower over the past year. Over five years, however, Bitcoin has surged more than 1,100%.
Some critics have questioned the stability of Bitcoin-backed credit products. Josh Man, a former Salomon Brothers trader, said in October that Saylor’s approach could expose STRC to liquidity risks. He argued that traditional banks have built strong protections around demand deposits, while raising interest rates to maintain a peg on Bitcoin-linked products may not work if investors seek to withdraw funds quickly.
