Strategy founder says digital credit is the next phase for crypto

Strategy (MSTR) founder Michael Saylor has identified "digital credit" as the next phase for the cryptocurrency market, Forbes reported. Speaking at the New York Digital Asset Summit, Saylor explained that Strategy is already implementing this concept through its preferred stock product, STRC, which he described as a low-volatility, high-yield investment vehicle based on Bitcoin. He noted that STRC, a product based on digital credit, is recording an 11.5% yield with volatility around 2% and a Sharpe Ratio approaching four. Saylor emphasized that in the future, financial markets will see direct competition between traditional products and a new stack comprising digital assets like BTC to absorb volatility, an intermediate stage of digital equity, and digital credit to provide stable, bond-like returns. However, the outlet noted that concerns remain, as Strategy's product relies on the continued rise of BTC's price and the company's ability to secure funding, potentially leaving it vulnerable in a market downturn.