Strategy Executive Chairman Michal Saylor has proposed the creation of Bitcoin-backed digital banking products that could attract up to $50 trillion if his company buys another $962 million worth of BTC.
That’s because Bitcoin has fallen more than 1% over the past 24 hours to trade at $89,907.39 as of 1:08 a.m. EST, according to facts from CoinMarketCap.
Bitcoin-backed digital banking system can offer customers higher returns
Speaking at the Bitcoin MENA event in Abu Dhabi, Saylor said that countries could use over-collateralized BTC reserves and tokenized credit instruments to create regulated digital bank accounts, which he says could offer higher returns than traditional deposits.
Strategy’s executive chairman noted that bank deposits in Japan, Switzerland and Europe offer little to no returns for account holders. Meanwhile, Euro money market funds pay roughly 150 basis points, and U.S. money market rates are closer to 400 basis points, he added.
Saylor argued that these low yields are the reason investors are turning to the corporate bond market, which he said wouldn’t even exist if “people weren’t disgusted with their bank accounts.”
He then outlined a structure in which digital credit instruments make up roughly 80% of a fund, combined with 20% in fiat money and a 10% reserve buffer to help reduce volatility.
Saylor said that if such a product were offered through a regulated entity, savers could ultimately send billions of dollars to institutions to access the higher returns on offer.
Should a country offer such a bill, Saylor predicted the move could lead to “$20 trillion or $50 trillion” in capital flows. He also argued that a country that adopts the model could see it become the “digital banking capital of the world.”
Suggested BTC-backed accounts reflect Strategy’s own offering
Saylor’s story of a high-yield, low-volatility digital banking product is similar to some of Strategy’s own offerings.
In July, the company introduced its STRC offering, a money market style preferred stock with a variable dividend rate of approximately 10%.
Although the product has grown to a market cap of about $2.9 billion, it has been met with some skepticism.
Let me rephrase this: Every STRC share he sells gives Saylor the obligation to pay 10% every year, with MSTR shares more likely, forever.
This increases the risk that BTC will be sold at some point.
— Daniel Musse (@DanielMuvdiYT) December 5, 2025
That’s mainly because Bitcoin’s unpredictable short-term volatility has raised questions about the viability of BTC-backed high-yield credit instruments.
Strategy adds more BTC to its reserves
Strategy is the largest corporate Bitcoin holder worldwide. The company began purchasing BTC in 2020 as part of a digital asset treasury plan. Over the years, the company has consistently added BTC to its reserves.
Strategy’s latest purchase was announced yesterday. Saylor said on
The latest Bitcoin purchase brought the company’s reserves to 660,624 BTC, data from Bitcoin Treasuries shows.
BTC holdings strategy (Source: Bitcoin treasuries)
Strategy’s continued accumulation of BTC comes at the same time the company’s stock price has been trading on a downward trend in recent months. Facts from Google Finance shows that shares of Strategy (MSTR) have plummeted more than 53% in the past six months.
The company also faces a possible delisting from MSCI, which could lead to billions of dollars of outflows for MSTR, analysts warn. A decision will be made on January 15.
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