Michael Saylor has renewed the debate around Bitcoin banking with a proposal for a Bitcoin-backed banking system aimed at sovereign funds and large institutions. Speaking at the Bitcoin MENA Conference, the Strategy executive chairman described how a regulated “Bitcoin bank” could use BTC reserves to power high-yield, low-volatility deposit products and attract trillions in global capital.
Saylor’s model places Bitcoin at the center of a regulated banking structure. The proposed Bitcoin bank would hold large on-chain Bitcoin reserves, issue over-collateralized credit instruments, and maintain a fiat liquidity buffer for daily operations.
According to Saylor, this structure lets banks offer deposits partly backed by Bitcoin while keeping clear reserve margins and volatility buffers. He said these deposits could pay more than savings products in Japan or Europe, where real returns stay near zero.
Saylor framed Bitcoin as “digital capital” that can replace gold and other traditional reserves in a modern banking stack. Strategy already uses Bitcoin-backed credit instruments, including preferred stock and perpetual notes that pay fixed dividends funded by BTC exposure. He told investors that this approach lets the firm turn long-duration Bitcoin holdings into short-duration cash flows while increasing Bitcoin per share over time.
Beyond corporate balance sheets, Saylor now targets what he calls “trapped” capital in low-yield sovereign and corporate bonds. He cited estimates of $20 trillion to $50 trillion parked in instruments that earn very little real return across Japan, Europe, and Switzerland.
His proposal centers on a regulated Bitcoin yield account that aims for about 8% annually while keeping volatility near zero. The structure mixes digital credit and currency: around 80% in Bitcoin-linked credit, 20% in fiat, and an additional 10% reserve buffer. Regulators could adjust the currency share or reserve buffer to manage risk, liquidity, and yield.
Saylor told the audience that a nation adopting this Bitcoin banking product could become a new “digital banking capital,” similar to Switzerland’s historic role in private banking. He argued that investors would shift capital if a regulated Bitcoin bank offered 100 to 300 basis points above current risk-free rates in their local currency.
Saylor delivered this pitch in the Middle East while meeting officials and investors in Dubai, Bahrain, Kuwait, and Abu Dhabi. He urged one jurisdiction to authorize a fully regulated Bitcoin bank that issues these Bitcoin-backed accounts and credit products under local supervision.
He also pointed to a broader shift in the United States, where major banks now offer custody and credit services tied to Bitcoin. At the same time, Strategy continues to expand its own holdings, recently buying more than 10,000 BTC at an average price near $90,600.
If even one country adopts Saylor’s Bitcoin-backed banking blueprint, the move could test whether Bitcoin can operate as a core reserve asset for a new generation of digital banks and high-yield deposit products.
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