- Bitcoin-backed digital credit products have grown to roughly US$10 billion (AU$14 billion) in under a year, according to Strive CEO Matt Cole.
- Industry executives believe the sector could become a multi-trillion-dollar market if it captures a small share of global credit markets.
- Firms including Strive, Bitcoin Standard Treasury Company and Nakamoto are expanding or exploring products tied to Bitcoin treasury holdings.
A growing market for Bitcoin-backed “digital credit” products could eventually develop into a US$3 trillion (AU$4.2 trillion) opportunity, according to executives speaking at Consensus Miami this week.
The discussion centred on new yield-generating instruments tied to Bitcoin treasury holdings, with Strive Chairman and CEO Matt Cole saying adoption had already reached nearly US$10 billion (AU$14 billion) within less than 12 months. He said the expansion ranked among the fastest capital markets product launches outside Bitcoin ETFs.
Digital credit products are designed to let investors earn returns while maintaining Bitcoin exposure. Rather than relying on company earnings, the instruments are backed by Bitcoin held on corporate balance sheets and are often structured as perpetual preferred shares with no maturity date.
Cole said the market opportunity could become significant if Bitcoin-backed credit captures even a small fraction of traditional finance. Using the estimated US$300 trillion (AU$420 trillion) global credit market as a benchmark, he said a 1% allocation would equal roughly US$3 trillion (AU$4.2 trillion).
Related: Bitcoin Reclaims Key On-Chain Levels as ETF Demand and Short Pressure Fuel Breakout
Treasury Firms Expand Into Digital Credit
Multiple treasury-focused firms are now assessing the sector. Bitcoin Standard Treasury Company president Katherine Dowling said the company intended to explore digital credit products as part of its broader treasury strategy.
Nakamoto COO Amanda Fabiano said the company had already launched a fund aimed at giving institutional investors access to structured credit exposure linked to Bitcoin.
At the same conference, Cole said the broader Bitcoin treasury sector was shifting from rapid expansion into a more selective phase. He argued that firms without clear strategies or operational depth may struggle to survive as competition intensifies.
Related: VanEck Says Bitcoin Could Reach US$1 Million Within Five Years
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