Michael Saylor’s proposal to integrate Bitcoin reserves into regulated banking
Michael Saylor, executive chairman of the Strategy, suggested that national governments consider developing a new kind of financial system: a regulated digital banking platform backed by Bitcoin reserves and tokenized credit tools.
These comments, shared during Saylor’s speech at the Bitcoin MENA conference in Abu Dhabi, are consistent with his broader view that digital assets can be integrated into mainstream financial frameworks.
Saylor’s proposal comes as Strategy continues to expand its Bitcoin holdings, including recently buy of 10,624 Bitcoins (BTC) worth about $962.7 million. The company now has 660,624 BTC, confirming Saylor’s view that digital assets can play a lasting role in financial ecosystems.
Saylor’s vision draws on Strategy’s experience with Bitcoin-related financial tools. Earlier in 2025, the company introduced STRC, a preferred stock designed with features that resemble money market instruments. With a variable dividend rate, STRC is intended to maintain a stable price close to its face value.
STRC has reached a market capitalization of approx 2.9 billion dollars. While it reflects elements of Saylor’s vision, it still operates within normal market constraints, including changes in liquidity and changes in investor sentiment.
The Saylor Framework: A Structured Digital Banking Model Supported by Bitcoin
Saylor describes a system where licensed national banks offer digital accounts backed by a mix of over-collateralized Bitcoin holdings, tokenized debt instruments and fiat reserves.
Saylor described an 80% allocation for tokenized credit and 20% for fiat. It also listed an additional 10% of interim reserves intended to support liquidity and stability, although the exact structure will depend on how regulators define reserves and safeguards.
For the crypto component, it recommends an overcollateralization ratio of 5:1, meaning the collateral would far exceed the underlying loan obligations.
As Saylor envisions, these structures could function as digital banking products that offer regulated exposure to new forms of collateral. He argues that countries that adopt such frameworks could attract international depositors seeking diversified, regulated options. In his presentation, he frames the model as a potential alternative for policy makers.
did you know Michael Saylor co-founded Strategy (then MicroStrategy) in 1989 and initially built the company as a provider of business intelligence and enterprise analytics software. Over time, he became famous for his large-scale bitcoin strategy.
Why countries should explore alternatives
Countries may need to reassess the structure and performance of their traditional banking systems, particularly in regions where returns on deposits are persistently low. This could prompt policy makers to consider whether digital asset collateral can play a role and whether this will expand the options available to investors and institutions.
Persistently low yields on traditional deposits in key markets
Saylor noted that interest rates on deposits in regions such as Japan, parts of Europe and Switzerland are close to zero. In higher rate environments such as the US, depositors compare bank rates with 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 could assess whether digital asset-backed models can expand the range of safe, regulated savings choices.
Growing global competition for investment capital
Saylor points out that global capital flows depend on factors such as clear rules, reliable institutions and a diverse supply. He argues that a jurisdiction with strong digital banking regulations could attract cross-border investors.
Saylor predicts that a country 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,” which argued that 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’s a quick overview:
-
Innovations in the design of financial products: 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: The establishment of Bitcoin banks would require updated supervisory frameworks, new auditing standards and stress testing methods. It should also align with existing regulations on digital assets.
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 occasional purchases.
Skepticism and considerations surrounding Saylor’s proposal
Saylor’s proposal sparked debate in financial circles. There are several factors to consider related to Bitcoin banks:
Bitcoin price volatility
As of December 12, 2025, Bitcoin was trading well below $100,000, hovering around $90,000, roughly 29% below its October 2025 all-time high of around $126,080. Even so, compared to December 15, 2020 (about $19,420), this implies a gain of approximately 360%. Bitcoin’s inherent volatility should be factored into any digital asset banking model.
Liquidity and market stress risks
There are doubts about whether Bitcoin-backed credit instruments can withstand rapid withdrawal scenarios. Former Salomon Brothers trader Josh Mandell, for example, raised concerns on liquidity risk in STRC-like instruments if market conditions change abruptly. These concerns underscore the need for rigorous stress testing and strong safeguards in any banking model involving bitcoin collateral.
Regulatory and operational challenges
To implement a Bitcoin-backed national banking system, countries should:
Meeting these requirements would present significant political and operational challenges.
About the Author
