Strategy Inc (NASDAQ:MSTR) CEO Phong Le says the biggest banks in the U.S. are in a race to catch up on Bitcoin (CRYPTO: BTC) adoption and will offer full-stack crypto services within two to three years.
What Happened: Speaking with podcaster Natalie Brunell, Le pointed out that major financial institutions are moving past skepticism and are now focused on retention.
“They want to be able to offer their customers native services with Bitcoin so they don’t take the money off platform,” Le noted.
Le outlined a rapid evolution for traditional finance (TradFi) entering the crypto space:
- Phase 1: Basic custody and buying/selling services.
- Phase 2: Bitcoin lending and yield generation.
- Phase 3: Digital money and Bitcoin-backed securities.
He highlighted Strategy’s new preferred security, dubbed Stretch (STRC), designed to offer a massive spread over traditional savings accounts.
STRC targets a 10.75% annualized return, paid monthly, and is designed to be price-stable.
Unlike MSTR common stock, it will act as a high-yield alternative to money market funds.
Dividends are structured as a return of capital, meaning taxes are deferred until the underlying asset is sold.
Why It Matters: Addressing rumors that Strategy might be forced to sell its Bitcoin stack to cover obligations, Le pointed to the company’s new $1.4 billion reserve.
This cash pile covers dividends for approximately 21 months, neutralizing the need to liquidate crypto assets during volatility.
While Le admitted the company would sell Bitcoin if absolutely necessary to avoid default, he emphasized the reserve makes that scenario highly unlikely.
“We do not expect to ever have to sell our Bitcoin,” Le stated. “That’s how we’ll run our business.”
Le further dismissed recent concerns regarding MSCI potentially excluding digital asset treasury companies from indices as “antagonistic” and shortsighted.
He views the friction as temporary, urging investors to focus on the long-term integration of Bitcoin into the global banking system.
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