Key facts
- Dan Hillery of UTXO believes the financialization layer on top of Bitcoin could one day rival the network itself.
- The digital credit market on Bitcoin is currently valued at approximately $16 billion.
- Hillery discussed variable-rate preferred securities like STRC and SATA, their pricing, and how buybacks anchor them near $100 par.
- He also explained the differences between digital credit risk and digital equity risk.
- Hillery is building a structured credit fund with senior and junior tranches.
The market for Bitcoin-backed digital credit has expanded significantly over the past two years, reaching an estimated $16 billion, according to Dan Hillery, head of digital credit at UTXO. Hillery expressed optimism that this financialization layer built on Bitcoin could eventually rival the cryptocurrency's own market capitalization, which has previously reached $1.5 trillion.