Digital Credit and Tokenized Rails
Saxxon@saxxonm
−12.1%
since Oct 6
The idea
I believe the enormous global credit market will start chasing yield through bitcoin-backed preferred shares, letting BTC treasury companies keep raising capital to buy more bitcoin and re-rate their stock, while over the next several years stocks, bonds and cash get tokenized onto always-on networks like Ethereum and Solana. To express this I split the basket roughly evenly between BTC treasury issuers plus bitcoin itself, and the coins, exchanges and infrastructure building the tokenization layer, with a slice in an actual bitcoin-backed preferred as the credit instrument.
What it owns
- Companies that issue bitcoin-backed preferred stock to raise cash, then buy more bitcoin with it, benefit when credit investors demand that yield and their shares re-rate on growing bitcoin per share. · Strategy IncIt pioneered the playbook of selling bitcoin-backed preferreds to credit investors and using the proceeds to buy more bitcoin, making share re-rating dependent on both preferred demand and per-share bitcoin growth., Twenty One CapitalIt applies the institutional bitcoin treasury model at scale; it benefits if credit demand for digital credit lifts the whole class of treasury companies., Strive IncIt is a smaller treasury company with room to re-rate significantly if credit markets reach for bitcoin-backed yield., MARA HoldingsIt mines bitcoin and holds one of the largest corporate bitcoin stacks, getting paid twice if the take works: its hoard re-rates with bitcoin and it can issue bitcoin-backed preferred stock., Nakamoto HoldingsIt bets the treasury model spreads through acquisition, consolidating bitcoin balance sheets into one listed vehicle that public markets value for per-share bitcoin growth.27%
- Bitcoin, Ethereum and Solana are the digital capital and settlement networks that the credit and tokenization flows in this take depend on. · BitcoinIt is the digital capital backing every preferred and treasury company in the take; buying pressure from trillions in credit flows lands here first., EthereumIt is one of the trusted, secure networks the financial system is expected to tokenize onto; owning it directly pays off if stocks, bonds and dollars move on-chain., SolanaIt is the fast, cheap network competing to host tokenized assets and stablecoins; its growth depends on real settlement volume, not just trading activity.24%
- Exchanges, custodians, stablecoin issuers and futures markets collect fees as assets move onto chains, earning from institutional adoption regardless of which blockchain wins the most settlement volume. · Coinbase GlobalIt custodies coins for most institutions expected to arrive and runs its own chain for tokenized assets, collecting fees on digital asset flows regardless of which blockchain dominates., Robinhood MarketsIt is actively moving stocks onto blockchain networks in multiple regions, positioning itself as infrastructure for investments tradeable on continuous decentralized networks., Galaxy DigitalIt is the investment bank for digital asset adoption, trading and advising as institutions move into tokenization; it earns more as credit and tokenization flows grow., Circle Internet GroupIts USDC stablecoin is the tokenized dollar proving assets move onto Ethereum and Solana; the position holds if stablecoin supply keeps growing., CME GroupIt runs regulated bitcoin and ether futures institutions use before and alongside owning coins, earning steady volume from adoption with lower volatility than the coins themselves.24%
- Companies applying the bitcoin treasury playbook to Ethereum and Solana benefit if those chains become the main settlement layers for tokenized assets. · Bitmine Immersion TechnologiesIt is the largest ethereum treasury company, holding ETH as a balance-sheet asset; it benefits if Ethereum remains the main tokenization settlement network., DeFi Development CorpIt raises capital to buy and stake Solana, offering a listed way to own a compounding Solana stack as the network becomes a permanent settlement layer., SharpLink GamingIt accumulates Ethereum as its core treasury asset, offering listed exposure to the tokenization settlement layer through per-share ethereum growth.10%
- Bitcoin-backed preferred stock is the yield instrument that credit markets would buy if trillions of dollars flow into digitized assets. · Strategy Inc 10% Preferred (Strife)It is a preferred backed by bitcoin, the actual digital credit instrument credit money would buy for yield; its strength shows whether the flywheel can sustain new issuance.5%
- Cash10%