At Consensus Miami, a panel of executives from leading Bitcoin treasury firms outlined a massive opportunity: the market for BTC-backed digital credit could reach $3 trillion. This nascent asset class has already expanded to roughly $10 billion in less than a year.
Digital Credit: From Zero to $10 Billion in Record Time
Matt Cole, Chairman and CEO of Strive, said during the panel: “We’re seeing exponential adoption in digital credit. We’ve reached about $10 billion in under a year — the second-fastest product launch in capital markets history after Bitcoin ETFs.” He noted that the global credit market stands at around $300 trillion, so even a 1% share for BTC-backed credit would mean $3 trillion in demand. “I don’t think that’s outrageous,” Cole added.
Digital credit refers to a new class of yield-bearing securities collateralized by Bitcoin. They are typically structured as perpetual preferred shares, with no fixed maturity date and regular payouts. Unlike traditional credit, these instruments are backed by Bitcoin held on corporate balance sheets rather than cash flows or profits. Strategy (formerly MicroStrategy) pioneered the space last year, and Strive followed with its own product, SATA.
More Treasury Firms Join the Race
Catherine Dowling, President of Bitcoin Standard Treasury Company, said her firm is actively evaluating digital credit products. “We are paying close attention. This is a very important topic. Our CIO has a structured finance background and is assessing these instruments. We need to balance market demand with what we can practically provide,” she stated. The firm intends to offer a variety of products to cater to different investor needs.
Amanda Fabiano, COO of Nakamoto, explained that her company identified the structured credit trend early and built a fund to give institutional investors exposure, including those who cannot directly buy preferred shares. Nakamoto does not yet have its own preferred stock product but is evaluating whether issuing one makes sense given its operating company structure. “I expect more treasury companies will issue these products, and we will assess which ones to include in our fund,” she said. Earlier this year, Nakamoto acquired UTXO Management, which manages Bitcoin investments and advisory for BTC Inc. and 210k Capital.
Kwasi Kwarteng, Executive Chairman of Stack and former UK Chancellor of the Exchequer, cited Blockstream CEO Adam Back's observation that there are currently about 200 Bitcoin treasury companies globally, compared to nearly 5,000 banks in the US alone. “If Bitcoin becomes a global reserve currency — and I believe it will — there’s room for many more treasury companies,” Kwarteng said, calling digital credit “the clearest articulation of the opportunity” on the panel.