Buck Launches Bitcoin-Backed Savings Coin With 7% Annual Rewards

Buck Labs has launched the BUCK token, a Bitcoin-backed savings coin offering 7% annual rewards. The token is structured to provide predictable returns through treasury earnings from shares in Strategy (MSTR), a major Bitcoin holder. This marks a new category of digital asset focused on savings rather than speculation.

BUCK is not a stablecoin and does not maintain a hard dollar peg. Instead, it is a governance token, allowing holders to vote on how rewards are distributed. Rewards accrue minute by minute, making the token attractive to users seeking regular returns without active trading.

Buck Labs, based in the Cayman Islands, is led by Travis VanderZanden, a former CEO of Bird and experienced operator in consumer technology. His vision for BUCK is to create a user-friendly savings model in crypto, leveraging Bitcoin's financial framework and Web3's accessibility.

Why Did This Happen?

The launch of BUCK reflects growing demand for yield-bearing crypto assets. Traditional stablecoins facilitate transfers but do not generate returns. Buck aims to fill that gap by offering a savings-focused alternative backed by Bitcoin holdings through STRC, Strategy's perpetual preferred stock.

Strategy owns nearly 675,000 BTC and has been expanding its holdings recently. STRC pays returns to Buck's treasury, which are then distributed to BUCK holders. This model ensures a transparent and Bitcoin-anchored savings mechanism.

How Did Markets React?

BUCK is initially priced at $1, with 7% annual rewards. The token is available for trading 24/7 and can be bought and sold without relying on traditional banking infrastructure. This structure aims to appeal to global users looking for predictable crypto-based earnings.

The launch comes amid increased Bitcoin ETF inflows and renewed interest in Bitcoin-backed assets. Strategy has also been increasing its Bitcoin holdings, adding to the appeal of products tied to its stock.

What Are Analysts Watching Next?

Investors are monitoring the token's performance and how it interacts with other crypto assets. The token is not available to U.S. persons and is subject to governance decisions by holders. Regulators may also scrutinize the product's compliance with existing financial frameworks.

Buck Labs is focusing on non-U.S. markets initially and plans to refine its model based on user feedback. The company aims to build a sustainable and globally accessible savings platform while maintaining regulatory alignment.

VanderZanden emphasized that BUCK is not intended as a speculative asset but as a tool for individuals to earn rewards without active trading. This approach aligns with broader trends in crypto toward financial utility and user accessibility.

The market is also watching whether BUCK will gain traction as a complementary asset to existing stablecoins. By offering a high-reward savings coin, Buck aims to provide a more complete financial experience within the crypto ecosystem.