Understanding Digital Money and Digital Yield

What happened

Bitcoin Magazine Understanding Digital Money and Digital Yield This is an in-depth overview of the nascent business models built on top of the preferred securities of Bitcoin balance sheets. Bitcoin Magazine Understanding Digital Money and Digital Yield The new business model of building on top of digital credit to create digital money and digital yield can be roughly categorized into two different architectures.

Debt-based, tranching structures Full-reserve, spendable balance structures This article gives a general overview of these models, with an analysis of economic implications. Digital Credit is the credit-like instruments issued by corporations with large Bitcoin balance sheets.

Today they are five Nasdaq-listed perpetual (a derivative contract with no expiry date) preferred equity—STRC, SATA, STRK, STRF, STRD—and all five are the top five most liquid preferred equity securities in the United States. Digital Credit is L2 (a network built on top of a blockchain to make transactions cheaper) because it is built on top of Bitcoin, which is L1.