Bitcoin-Backed Stablecoin? Michael Saylor Says Digital Dollars Could Offer 7% Yield

Strategy (MSTR) Executive Chairman Michael Saylor said a Bitcoin-backed stablecoin could potentially offer investors a 7% yield with near-zero volatility. He described it as digital money built on the company's expanding digital credit business.

Saylor, during an interview with Binance on Monday, described the concept as the next step in what he calls the evolution from digital capital to digital credit and ultimately digital money. “So think of it as almost like the mythical Bitcoin-backed stablecoin. Imagine if you had a stablecoin that paid 7%." According to him, it would be a dollar-backed token that pays more than conventional stablecoins.

Saylor said existing stablecoins generally generate returns tied to short-term dollar rates and lower fees, while a Bitcoin-backed model could potentially generate higher returns through Bitcoin-based credit. He said other companies, including Saturn, are already developing products in this area.

Saturn is a yield-centric dual token protocol with a stablecoin pegged to the US dollar called USDat and a yield-bearing staked version called sUSDat that uses Bitcoin-backed institutional digital credit.

Strategy, however, did not announce a product of its own.