Proposal: Bitcoin Standard for Corporate Treasuries with Tokenized Business Value

[tatsumaru]

Introduction:
As we enter an era where success in investing means outperforming Bitcoin rather than traditional indices like the S&P, I believe many companies will consider transitioning to a Bitcoin Standard for their treasuries. Sovryn, with BitcoinOS, is in a unique position to offer a framework that facilitates this shift.

Problem:
Companies face an uphill battle against inflation and financial bureaucracy, and there’s no existing structure that supports a seamless move to the Bitcoin Standard. With MicroStrategy’s success as a precursor, we can expect more businesses to follow. However, no platform currently provides a comprehensive solution for companies to adopt Bitcoin while also issuing tokens that reflect the cumulative value of their business and Bitcoin holdings.

Proposed Solution:
Sovryn and BitcoinOS could develop a product that allows companies to tokenize their businesses directly on the Bitcoin Standard. These tokens would represent the company’s economic value on top of their Bitcoin holdings, bypassing traditional IPOs and shareholders. This would enable firms to contribute real value to the economy, leveraging Bitcoin banking and lending services, while minimizing bureaucratic red tape.

Value Proposition:
While Ethereum attempted a similar model, it fell short due to its lack of a clear monetary standard. Bitcoin, as a sound foundation, allows for sustainable long-term growth. By focusing on tokenizing real businesses rather than memecoins, Sovryn could position itself as the future platform for company tokenization, potentially becoming the NASDAQ of Bitcoin-powered businesses.

Call to Action:
What are your thoughts on Sovryn developing a Bitcoin Standard framework for corporate treasuries and business tokenization? How could this product enhance Sovryn’s ecosystem and position it as a leader in corporate finance on Bitcoin? I am looking to gauge the feasibility and interest about this before I start a SIP.

Cheers.

[Lejonta408]

You are talking about all this where is my dame money like what the hell you all think its ok to just keep blocking me from my assets trying to control me where is my ownership rights and intellectual property rights

[Phrygian12]

Could you describe the functionality of this? Like, how would it work?

Essentially just a place for people/ businesses to mint tokens? Launch tokens? Garner interest and startup investing? Or is something else happening?

A mint token function built in the Dapp, with a way to create liquidity pool would be a game changer for Sovryn even without business emphasis. It would definitely increase staking revenue.

[tatsumaru]

Sure. It’s not just about tokenizing assets; it’s about giving businesses direct access to the Bitcoin Standard as a service. The focus here is on bringing the real economy to Bitcoin.

Some thoughts:

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How It Works for Businesses:

• Capital Raising: Businesses can raise capital by issuing tokens without the complexity of traditional IPOs, reducing regulatory hurdles, and opening investment opportunities to a broader audience. Investing in shitcoins never mattered because they didn’t represent anything, but tokens on Sovryn will represent the economic value a business adds on top of Bitcoin and result in a completely new stock exchange where every company is protected from inflation. Moreover businesses are now backed by the entire global economy where their treasuries appreciate independently of their success, as long the economy is strengthening.
• Access to Financial Services: Sovryn provides businesses with instant liquidity through borrowing against their Bitcoin holdings. By utilizing DLLR, companies can efficiently manage operational expenses. The automated verification via BitcoinOS allows businesses to get rapid access to funds without traditional fiat delays or regulatory hurdles. This streamlined process means that companies can leverage their Bitcoin assets to cover expenses, while benefiting from stability and avoiding the risks tied to fiat inflation. Moreover this level of vertical integration will make central bank interest rates irrelevant and will eventually result in almost free loans that will bring the whole business lending market to Sovryn.
• Proof of Reserves: BitcoinOS’s inherent transparency provides a verifiable proof of reserves mechanism, allowing investors to confirm the financial health of these companies in real time, directly on the Bitcoin blockchain. This allows Sovryn to eat the entire reserves market and possibly even start offering insurance at some point.

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How It Works for Sovryn:

• Efficient Internal Market: DLLR can allow an intra-Sovryn economy between all businesses running on the platform. This eliminates the need for fiat conversions, avoiding fees and delays, and streamlines the transaction process for participants. Instead of going after the markets of existing stablecoins and begging for a share, we create our own frictionless market, blue ocean strategy style. Fees are mostly paid for exiting the Sovryn economic zone, which creates an incentive for more businesses to join the economic zone.
• Impact on Liquidity Pools and DLLR Use: As businesses tokenize and use DLLR for their operations, the demand for DLLR will grow. This enhances liquidity pools and makes DLLR a core part of Sovryn’s financial infrastructure, driving more adoption and ensuring DLLR’s integral role within the ecosystem.
• Unlocking New Portfolio Management Opportunities: Sovryn also provides shareholders with exposure to a new class of assets—tokens representing real businesses on the Bitcoin standard. This opens opportunities for creating custom portfolios, indices, hedge funds composed of these businesses. Shareholders can diversify their investments, back meaningful projects, and benefit from their growth.

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Conclusion:

Ethereum always tried to imitate Bitcoin, and our grave mistake at Sovryn was thinking that the next step for Bitcoin was to imitate Ethereum. Tokens that succeeded on Ethereum did so precisely because Bitcoin was not relevant to their success, and trying to bring those models to Bitcoin misunderstands the unique power of Bitcoin. Many projects on Ethereum ended up being just interchain noise with no lasting value or economic impact.
The real opportunity is to build a financial infrastructure that taps into Bitcoin’s sound money principles to serve the real economy. Sovryn’s mission is to unlock Bitcoin’s full potential by enabling sustainable business growth, driving genuine economic activity, and fostering long-term innovation. We should not be here to store and replicate the mistakes of others but to leverage Bitcoin’s strengths to create an enduring and impactful financial ecosystem.

One of Peter Thiel’s favorite questions is “What great company is no one building?”. This proposal is my answer.

[tatsumaru]

Thanks! I’d like to get some more feedback to gauge interest.
Something is happening, the bitcoin standard market might be starting, we are well positioned to build the framework for that:

[tatsumaru]

@tatsumaru

Efficient Internal Market: DLLR can allow an intra-Sovryn economy between all businesses running on the platform. This eliminates the need for fiat conversions, avoiding fees and delays, and streamlines the transaction process for participants. Instead of going after the markets of existing stablecoins and begging for a share, we create our own frictionless market, blue ocean strategy style. Fees are mostly paid for exiting the Sovryn economic zone, which creates an incentive for more businesses to join the economic zone.

The efficient internal markets will become more important than ever once countries start trying to tax bitcoin out of existence. We should not sleep on this:

@yago

[matefri0]

Would this be similar to Volcano Bonds on Liquid network?

I believe the most attractive aspect for a company would be security, reporting and UX for themselves aswell as buyers of these tokens.

Looks very attractive, my main concern would be the legal aspects in many countries.

[tatsumaru]

The proposal is similar to Volcano Bonds on the Liquid Network in some ways but has a fundamentally different focus and target audience.

Similarities:

• Bitcoin-Backed Liquidity: Both the proposal and Volcano Bonds use Bitcoin as collateral for issuing financial assets, giving access to liquidity while retaining Bitcoin exposure.
• On-Chain Transparency: Just like Volcano Bonds use Liquid’s on-chain features for transparency, this proposal relies on BitcoinOS for automated proof of reserves, giving investors confidence with verifiable on-chain data.

Differences:

• Target Audience: Volcano Bonds are a government-issued asset for El Salvador, intended for national projects. In contrast, this proposal is an extension to Sovryn that empowers businesses—giving them tools to raise capital, manage liquidity, and run operations in a decentralized and Bitcoin-native manner.
• Business Utility: The proposal is focused on creating a financial ecosystem for businesses, but it goes beyond liquidity and introduces internal markets (as well as other features see above) creating constant demand for DLLR ( @one_digit this might be of interest to you ). My opinion is that just like USD, DLLR shouldn’t be saved but used and its value should be maintained through velocity not staticity.

Security, Reporting, and UX:

• Security: Businesses and buyers benefit from BitcoinOS, which provides Bitcoin-level security for all transactions.
• Reporting: The use of automated proof of reserves ensures that companies and investors have transparent verification of financial health, which is particularly attractive for investors.
• User Experience: The proposal integrates the entire lifecycle of corporate finance (token issuance, liquidity management, proof of reserves) into a seamless user experience. This makes it easy for both the companies issuing tokens and the investors buying them.

Legal Aspects:

• Legal challenges are a consideration although as far as I can tell all the modalities here have been validates in different contexts (e.g. MSTR is already running on the bitcoin standard, and companies have already raised capital via ICOs). Unlike the government-backed nature of Volcano Bonds, businesses using this system must handle their own compliance based on jurisdiction, but we should consider helping with that as part of the bitcoin standard platform (e.g. automated accounting and whatever else we could provide to make it turnkey).

Strategy: Our beachhead strategy here could be starting with the initial value proposition of offering businesses an easy way to go on the bitcoin standard which is in and of itself valuable, and then as we get n+1 customers we could start introducing networked products like the internal markets, indices and so on.

[yago]

I agree that tokenization of traditional assets is going to be important on Bitcoin. What I am missing here is what is the MVP offering for businesses? Do you see this more as a product or as a service, that is bespoke to each business?

[tatsumaru]

The MVP could be a SaaS app that integrates with Sovryn/BitcoinOS, possibly as a sub-unit using API calls. This would also serve as a proof of concept for building on Sovryn/BitcoinOS. The app would let businesses of any size open accounts and access user-friendly tools to operate on the Bitcoin standard. For example, it could seamlessly link their bank accounts with a Sovryn Bitcoin wallet, offering automated Bitcoin fair value accounting, proof of reserves, and the option to issue their own business token (and whatever the equivalent of a convertible bond is).

This approach gives our DEX a massive advantage: we won’t compete in the race to the bottom with other DEXes and CEXes. Instead, we’ll create a blue ocean DEX, exclusively listing Bitcoinized businesses on Sovryn/BitcoinOS. We’ll be uniquely positioned as the first exchange for these companies, becoming the NASDAQ of Bitcoinized startups—not a casino for worthless memecoins. Moreover, unlike CoinMarketCap, which now provides mostly meaningless esoteric crypto metrics, this platform would be the first to list real-economy companies—farms, banks, tech startups—on the Bitcoin standard, along with their Bitcoin reserves, offering custom indices, and unprecedented transparency and trust that the crypto space lacks. No need for rating agencies anymore. (Hedge funds become a target audience for the app/exchange too).

Additionally, businesses on the platform can trade DLLR internally, creating a frictionless secondary market and driving DLLR demand and velocity. Think of it as FEDI for businesses—fast, private, secure, and cheap transactions, without a middleman like PayPal freezing funds for political reasons. We could possibly offer an extremely cheap BTC to Fiat off-ramp as well as a function of bundling multiple transactions into the same block (kinda like Lightning), which will further derisk the bitcoinization of corporate treasuries. (Maybe even obtain a banking license in Switzerland or Ireland at some point, to further integrate and accelerate, and de-risk off-ramping).

As a business, even if you don’t want to issue your own token, you should still be interested in this, because, chances are you are operating on razor thin margins (restaurants, barbers, farms, clubs, online resellers etc.) and you are constantly exposed to unnecessary risks such as inflation, capital gains and exorbitant payment processing fees, all of which we’ll allow you to recover to derisk your future. Now you can start a fun local mom and pop store that doesn’t have to blitzscale and vertically integrate the whole world just to outpace inflation and survive. Heck maybe even individuals like celebrities could put their wealth into Bitcoin and allow people to bet on them via bitcoin-backed, career-representing memecoins.

Lastly, I think our MVP should draw inspiration from Michael Saylor’s implementation of the Bitcoin Standard at MicroStrategy, which he describes as having three core components.

1. Balance sheet : Bitcoin balance sheet
2. The product / service / technology / value of a company
3. A Bitcoin securitization business: “we leverage our bitcoin balance sheet to issue securities to the public market that no one else could”

This is what he says in regards to what separates MSTR from ETFs and other companies that are not on the Bitcoin standard (which I think is also relevant to Sovryn in general):
“There are ETFs like Blackrock and Fidelity that are comparable to us in size, but those are overnight deposits, so if you say ‘Hey I’ve got $17b in deposits’ people can take the money out of the bank tomorrow. They basically are just a trustee holding the money and they return it when they are asked to return it, so you can’t leverage it and you can’t build businesses on top of it. Microstrategy is different - we have permanent capital. Microstrategy can issue convertible bonds on top of that capital. We have $17b in BTC exposure and $4.2b in convertible bonds. The bonds we can issue fairly cheaply because we have a stock. The stock reflects the permanent capital, the bitcoin, but that’s non-redeemable either. That means that it can generate a premium to the bitcoin. So as people trade the stock and trade the options on the stock, the stock trades at a premium to the asset value and while this is true the company issues either equity or convertible bonds at a premium to the underlying assets. When we do that we don’t just put the money in the bank or in T-bills, we actually invest the money in Bitcoin. If we were to sell a $1b of equity in the market that’s backed by $500m of Bitcoin, at a 100% premium, then we buy the bitcoin and 3 days later we’ve generated a $500m gain for our shareholders in Bitcoin. That generates what we call a BTC yield.”

Let me know what you think.

[tatsumaru]

Just putting this here:

[tatsumaru]

Others are catching on. Bridge allows businesses to issue their own stablecoins which effectively function like vouchers. The way I see it, Bridge didn’t quite figure it out. It’s not really putting companies on top of the Bitcoin standard but they are getting close to that parallel economy which is why Stripe just acquired them for $1.1b.

Why are we not having the discussion about tokenizing businesses, and obsessing over meaningless partnerships and memecoins instead? In 2025 it’s all about the real economy.

[tatsumaru]

@Ingalandia @one_digit @yago
This proposal solves the DLLR demand problem, makes the Sovryn DEX uniquely competitive and gives it a moat, will make lending cheap for consumers and will make the SOV governance meaningful by applying Sovryn’s otherwise philosophical framework to solving real economic problems.

Is there currently a better vision for Sovryn than this one or any vision really? It’s clear that we are not going to generate demand by doubling down on strange loop abstractions and fractal tokens. Unless anyone has a better idea of what we should do going forward I think we should just put this to a SIP and do a hard Sovryn pivot.

[tatsumaru]

@yago
This needs to be addressed. Trying to create more infra is a bad strategy for BOS/Sovryn, there’s already too much infra and too little utility. It’s time to start thinking about utility and comparative advantages as I’ve proposed.

Successful applications are capturing more of the revenue by controlling user experiences and creating self-contained ecosystems, reducing the flow of value back to the base layer.

NO ONE cares about the 756th rollup platform that has smart contracts that’s orange instead of green. Unless we are able to leverage the fundamental advantages of Bitcoin and build something that only Bitcoin can, then BOS is dead in the water.

This is why I wrote this proposal. It aims to leverage both the unique advantages of Bitcoin and build the self-contained ecosystem to drive ongoing demand.

[tatsumaru]

Companies want to go on the bitcoin standard! Sovryn should be there saying “Yes, come on our corporate treasury platform!” Instead Strike, which doesn’t even offer accounting, lending, tokenization or stablecoins, is offering to help, because there’s no B2B app that does this.

@yago @one_digit @Ingalandia don’t sleep at the wheel.

[tatsumaru]

Even more evidence that people are super excited to trade companies that are on the bitcoin economic layer.