Buck Foundation Launches Borderless Savings Coin Backed by Institutional Assets

The Buck Foundation has introduced a new digital asset designed to deliver 7% annual returns to holders. The token is backed by Strategy's bitcoin-collateralized perpetual preferred stock (STRC), which provides a monthly return to Buck's treasury. This structure aims to combine institutional-grade financial instruments with a digital savings model, distinguishing itself from traditional stablecoins that prioritize liquidity over yield.

The Buck token allows 24/7 trading and reward accrual based on exact holding time. Investors can enter and exit directly in cryptocurrency, avoiding fiat conversions and traditional banking infrastructure. The token's governance model allows holders to vote on how earnings are distributed, creating a decentralized savings community.

Buck is positioned as a high-yield alternative to stablecoins, which are often used as checking accounts for daily transactions. By offering consistent returns and financial discipline, Buck seeks to complement stablecoins and expand the utility of crypto as a savings vehicle.

Why Did This Happen?

The Buck Foundation was founded by Travis Vanderzanden, a former executive at Uber and Lyft. Vanderzanden emphasized the need for a user-friendly, accessible savings tool in crypto that does not require speculation. The token is part of a broader trend toward institutional-grade digital assets backed by real-world collateral.

Regulatory developments have also created a more favorable environment for digital asset adoption. Goldman Sachs reported that 35% of institutions cite regulatory uncertainty as the biggest hurdle to crypto adoption, while 32% view clarity as the top catalyst. The ongoing debate around stablecoin legislation and custody rules has further shaped the landscape for products like Buck.

How Did Markets React?

The Buck token is priced at $1 per token and aims to reach a market value of $100 million. While the token has not yet shown significant movement in capitalization, its structure has drawn attention from investors seeking alternatives to volatile crypto assets.

Buck is part of a larger push by crypto firms to gain regulatory clarity and legitimacy. World Liberty Financial, the Trump family's crypto venture, recently applied for a national banking charter to issue and custody USD1 stablecoins. This trend reflects a broader shift as crypto players seek integration with traditional financial systems.

What Are Analysts Watching Next?

Analysts are closely watching whether Buck can maintain its 7% return model while scaling its user base. Some have raised concerns about the lack of direct ownership rights for Buck holders and the reliance on STRC for yield. While STRC is a publicly traded asset, Buck holders do not have claims or entitlements to dividends or profits from the stock.

Market observers are also watching the upcoming Senate hearings on crypto legislation scheduled for January 15. These hearings could shape the regulatory environment for products like Buck and determine whether yield-bearing digital assets gain broader acceptance.

The Buck token's success may also depend on competition from other yield-focused tokens and stablecoins. Community banks and traditional financial institutions have expressed concerns about the potential for stablecoin yields to disrupt traditional savings models. Any regulatory action to limit these models could affect Buck's adoption.