Banks & Bitcoin: A Jane Austen Twist!

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Dear Reader, let us embark upon a most curious tale of financial intrigue, where the esteemed Strategy CEO, Mr. Phong Le, has been engaged in discourse with the illustrious Mr. Michael Saylor. One cannot help but observe that the conversations, though ostensibly about the ‘orange-pilling’ of bankers, are more about the urgent need for large institutions to hasten their pursuit of Bitcoin, lest they be left behind in the race for crypto-native supremacy. 🧠💰

In a most enlightening interview with the erudite Ms. Nathalie Brunell, Mr. Le revealed that the initial discussions revolve around the most fundamental of matters: custody and exchange. For, as any discerning observer would note, the banks have witnessed the migration of funds to crypto-native entities, and thus, their desire to offer services akin to Coinbase or Fidelity, lest their clients flee to more convenient platforms. 🏦📈

“They are all striving to catch up with the base of custodying Bitcoin and providing exchange services,” Mr. Le declared, with the gravitas of a man who has seen the future. “They have beheld the endeavors of Coinbase and Fidelity, and now wish to offer their clients native services with BTC, lest their funds depart for greener pastures.” 🧾

Large US Banks Begin Bitcoin Conversations

Mr. Le, ever the pragmatist, described this baseline in the language of banking, likening BTC to a checking account and savings account for Bitcoin, a notion so revolutionary it might make even Mr. Darcy blush. “And then, on top of that, what do they wish to do?” he mused, as if addressing a room full of skeptical investors. 🎩

His vision, a laddered product roadmap, mirrors the capital-markets “stack” Strategy has painstakingly industrialized: credit, yield, structured exposure, and eventually, instruments resembling money, all collateralized by BTC. “Then they desire to offer coin lending, loans against Bitcoin,” he intoned, “and while many engage in such on a one-to-one basis, they should provide it generally. Perhaps offering instruments that yield profit from Bitcoin.” 📈

From there, the banks, much like the characters in a well-told tale, converge on Strategy’s playbook, not copying it verbatim, but arriving at the same conclusion: Bitcoin can serve as collateral for investable products. “And then, a set of Bitcoin-backed products, not unlike what we do,” he remarked, as if revealing a secret known only to the enlightened. 🧾

The “underwrite” comment is the tell, dear reader. This is no mere custodial button for wealth clients, but a transformation of exposure into fundable, tradable paper, seamlessly integrated into existing bank distribution. Preferreds, structured notes, and credit instruments, all bearing the BTC collateral story. 📜

Mr. Le then ventured into the realm of “digital credit,” explicitly tying it to preferred-style issuance and bank-native variants. “And then, you get into offering digital credit,” he said, “which would be our preferreds or a bank preferred based off of Bitcoin.” 🧠

Finally, the last step, which Mr. Saylor discussed at the Bitcoin in the Middle East, is “digital money”-access to something resembling money, backed by Bitcoin, with a yield surpassing the mundane. “Eight, nine percent?” he mused, as if offering a golden opportunity. 🎯

This “digital money” framing aligns with Mr. Saylor’s recent musings: BTC as collateral for a broader credit superstructure. At Bitcoin MENA 2025, he proclaimed the shift is already underway, and the largest names in US finance are no longer keeping their distance, as Bitcoinist reported. 🏦

“In the past six months, I have noted and been approached by BNY Mellon, Wells Fargo, Bank of America, Charles Schwab, JP Morgan, and Citi,” Mr. Saylor declared, as if reciting a list of potential suitors. “They are all starting to issue credit against either Bitcoin or derivatives like IBIT.” 🧾

At press time, BTC traded at

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2025-12-24 16:34