Capital B to build STRC-style bitcoin credit instrument

Capital B will develop a STRC-style bitcoin credit instrument that allows clients to obtain credit against bitcoin holdings while the underlying BTC remains on the firm's balance sheet.

The product will let borrowers access fiat or stablecoin liquidity secured by bitcoin collateral without selling their coins. Capital B plans to structure the instrument to follow common STRC-style terms where bitcoin is pledged to secure a loan or credit facility and a lender or trustee holds or monitors the collateral.

Development work will focus on custody arrangements, collateral valuation, margining processes and legal documentation. The firm says the instrument will set haircuts, margin requirements and triggers for liquidation if bitcoin prices move against collateral positions.

Target clients include institutional managers of bitcoin treasuries such as corporate treasuries and investment funds that want to retain bitcoin exposure while raising cash for operations, investments or liability management. Capital B intends to define eligible collateral criteria and counterparty rules as the product is finalised.

Risk controls are planned to address bitcoin price volatility. Expected protections include overcollateralization, real-time price feeds, predefined liquidation thresholds and formal procedures for margin calls and collateral liquidation. The design will also include measures to limit counterparty credit exposure.

Regulatory and compliance requirements in France and the European Union will influence structure and distribution. Rules on lending, custody of crypto assets, anti-money-laundering checks and investor protections are likely to affect documentation, borrower eligibility and settlement processes. Capital B will work with custodians and legal advisers to align the facility with applicable rules.

The firm will publish timelines, pricing and eligibility details as development progresses and as it secures any required regulatory clearances. Firms that manage bitcoin on behalf of clients commonly build such financing tools to integrate crypto assets into broader treasury and financing strategies.