Solstice Launches Solana Product Linked to Strategy’s STRC Preferred

Solstice Finance, a Solana-based decentralized finance protocol, has launched a product tied to the return profile of Strategy’s STRC preferred stock.

CoinDesk reported on August 10 that Solstice introduced a Solana-based product called strcUSX. Solstice said it is the first STRC-linked product launched on Solana.

The product does not tokenize STRC shares or give users ownership of the stock itself. Instead, users deposit USX, Solstice’s dollar-pegged settlement token, and receive one of two tokens linked to dividend income from a portfolio holding STRC as well as the risk of price moves in the shares.

The lower-risk SR-strcUSX token has priority on payouts and targets a 7% annual yield. JR-strcUSX, by contrast, receives the residual return after senior investors are paid, but absorbs losses first if STRC declines in price. Its target annual percentage yield is more than 20%.

STRC is a floating-rate perpetual preferred stock issued by Strategy and is currently paying a 12% cash dividend. The dividend rate is determined by Strategy’s board, and actual payments also depend on a board declaration.

Solstice said users can redeem their funds after a seven-day withdrawal waiting period. They can also liquidate immediately by paying a fee. Returns accrue through changes in the token’s redemption value rather than through separate dividend distributions.

Last week, Strategy sold 1,690 Bitcoin for $108.6 million and repurchased 1,152,020 shares of STRC for the same amount. As a result, the company’s Bitcoin holdings fell to 844,407 BTC.