Michael Saylor’s pitch to integrate Bitcoin reserves into regulated banking
Michael Saylor, executive chair of Strategy, has suggested that national governments consider developing a novel type of financial system: regulated digital banking platforms backed by Bitcoin reserves and tokenized credit tools.
These comments, shared during Saylor’s keynote at the Bitcoin MENA conference in Abu Dhabi, align with his broader view that digital assets could be integrated into mainstream financial frameworks.
Saylor’s proposal comes as Strategy continues to expand its Bitcoin holdings, including a recent purchase of 10,624 Bitcoin (BTC) valued at about $962.7 million. The firm now holds 660,624 BTC, a position that reinforces Saylor’s view that digital assets can play a sustained role in financial ecosystems.
Saylor’s vision draws on Strategy’s experience with Bitcoin-linked financial tools. Earlier in 2025, the company introduced STRC, a preferred share designed with features that resemble money market instruments. With a variable dividend rate, STRC is intended to maintain a stable price near its par value.
STRC has reached a market cap of around $2.9 billion. While it reflects elements of Saylor’s vision, it still operates within normal market constraints, including changes in liquidity and shifts in investor sentiment.
Saylor’s framework: A structured Bitcoin-backed digital banking model
Saylor describes a system in which licensed national banks offer digital accounts backed by a mix of overcollateralized Bitcoin holdings, tokenized debt instruments and fiat reserves.
Saylor described an 80% allocation to tokenized credit and 20% to fiat. He also cited an additional 10% reserve buffer intended to support liquidity and stability, though the exact structure would depend on how regulators define reserves and safeguards.
For the crypto component, he recommends a 5:1 overcollateralization ratio, meaning collateral would far exceed the underlying credit obligations.
As Saylor envisions it, these structures could function as digital banking products that offer regulated exposure to new forms of collateral. He argues that countries adopting such frameworks could attract international savers seeking diversified, regulated options. In his presentation, he frames the model as a potential alternative for policymakers.
Did you know? Michael Saylor co-founded Strategy (then MicroStrategy) in 1989 and initially built the company as an enterprise business intelligence and analytics software vendor. Over time, it became known for its large-scale Bitcoin strategy.
Why countries may need to explore alternatives
Countries may need to reassess the structure and performance of their traditional banking systems, particularly in regions where deposit yields remain persistently low. This could prompt policymakers to consider whether digital asset collateral can play a role and whether doing so would expand the options available to investors and institutions.
Persistently low returns on traditional deposits in key markets
Saylor observed that deposit interest rates in regions such as Japan, parts of Europe and Switzerland are close to zero. In higher-rate environments such as the US, depositors weigh bank rates against alternatives such as money market funds.
He argues that this dynamic has led some investors to seek higher yields through options such as corporate bonds. As a result, Saylor suggests that governments may want to assess whether digital-asset-backed models could broaden the range of secure, regulated savings choices.
Rising global competition for investment capital
Saylor highlights how global capital flows depend on factors such as clear rules, reliable institutions and diverse offerings. He argues that a jurisdiction with strong digital banking regulations could appeal to cross-border investors.
Saylor projects that a nation implementing this framework could attract between $20 trillion and $50 trillion in capital, effectively establishing itself as a digital banking hub.
Did you know? Before entering the crypto space, Saylor gained attention for writing “The Mobile Wave,” a book that argued mobile technology would reshape global communication and commerce.
Potential implications of Saylor’s proposals for the financial landscape
If a country explores Bitcoin-backed digital banking models, several outcomes could follow. Here is a brief overview:
Innovation in financial product design: A regulated digital bank with hybrid collateral pools would represent a new type of financial product. It would combine traditional credit markets with digital asset reserves, creating a distinct model.
Strategic positioning in digital finance: Countries experimenting with Bitcoin banks could assess whether these frameworks strengthen their financial systems. The outcome would depend on regulatory, economic and technological factors.
Evolution of banking infrastructure: Establishing Bitcoin banks would require updated supervisory frameworks, new auditing standards and stress-testing methods. It would also need to align with existing digital asset regulations.
Did you know? Strategy is one of the world’s largest corporate holders of Bitcoin, having acquired hundreds of thousands of BTC over several years through periodic purchases.
Skepticism and considerations around Saylor’s proposal
Saylor’s proposal has sparked debate across financial circles. Several factors related to Bitcoin banks would need to be considered:
Bitcoin’s price volatility
As of Dec. 12, 2025, Bitcoin has been trading well below $100,000, hovering around $90,000, roughly 29% below its October 2025 all-time high of about $126,080. Even so, compared with Dec. 15, 2020 (about $19,420), that implies a gain of roughly 360%. Bitcoin’s inherent volatility would need to be factored into any digital-asset banking model.
Liquidity and market stress risks
There are doubts about whether Bitcoin-backed credit instruments could withstand rapid-withdrawal scenarios. Former Salomon Brothers trader Josh Mandell, for instance, has raised concerns about liquidity risk in STRC-like instruments if market conditions shift abruptly. These concerns underscore the need for rigorous stress testing and robust safeguards in any banking model that involves Bitcoin collateral.
Regulatory and operational challenges
To implement a Bitcoin-backed national banking system, countries would need:
Meeting these requirements would pose substantial policy and operational challenges.
