Saylor Proposes Four-Layer Bitcoin Financial Stack for Increased Utility

Michael Saylor has proposed a four-layer Bitcoin financial stack, which could expand the utility of digital capital. The framework assigns separate roles to bitcoin (BTC), Strategy's STRC preferred stock, Solstice Finance's yield-bearing SR-strcUSX token, and USDT.

The model shows how financial companies can convert volatile BTC capital into credit, savings products, and payment assets. Saylor used an oil-refining analogy to explain the concept, saying that 'civilization gets more utility by refining' crude oil into various products.

According to the framework, BTC occupies the capital layer as a bearer asset, while STRC is classified as digital credit due to its variable income-generating potential. SR-strcUSX targets a 7% annual yield and receives income first, while JR-strcUSX absorbs losses from changes in STRC's value.

USDT sits at the payment end as a dollar-linked stablecoin exposed to various risks despite its stable-value design. Saylor recently presented his digital-credit strategy at Goldman Sachs' Digital Assets Conference in London, connecting it with institutional capital markets.