Bitcoin-Backed Digital Credit Market Swells to $16 Billion

The growth of the Bitcoin-backed digital credit market has been rapid over the past two years. From nearly non-existent, it has expanded to around $16 billion today. Dan Hillery of UTXO believes this financial layer could eventually rival Bitcoin's network value of $1.5 trillion.

Hillery discussed how these securities are priced and how buybacks help maintain their value near par. He also explained the structure of his credit fund, which includes senior and junior tranches.