Saturn’s USDat Token Warps DeFi With 11% Bitcoin Dividends—At the Expense of Regulators

A crypto startup is betting that 11% Bitcoin-linked dividends can be weaponized against U.S. regulators—by wrapping them into a tokenized dollar product that DeFi protocols can’t ignore.

Saturn’s USDat token, backed by Strategy’s Bitcoin-linked credit instruments, raised $500,000 from YZi Labs and $300,000 in an angel round led by Sora Ventures. The token’s yield structure hinges on Strategy’s ability to sustain 11% annualized dividends from its Nasdaq-listed STRC preferred equity, which outpaces U.S. three-month Treasury yields of 3.6% (Jan. 2026).

Saturn co-founder Kevin Li said:

"The protocol aims to scale transparent yield distribution into the billions."

Jason Fang, founder of Sora Ventures, added:

"Saturn connects institutional credit products with DeFi infrastructure in a way existing stablecoins do not."

Regulatory scrutiny is intensifying as U.S. lawmakers draft bills like the GENIUS Act, which would impose $10 billion+ oversight thresholds on yield-bearing stablecoins.

This creates a structural tension: USDat’s Bitcoin-backed financing model relies on maintaining preferred dividends while navigating potential restrictions on tokenized yields. By contrast, tokenized Treasuries hold $8.86B in TVL but lack the Bitcoin price exposure that drives Strategy’s capital structure.

Look, the hybrid model exposes Saturn to dual pressures—Bitcoin’s price volatility could strain Strategy’s dividend sustainability, while regulatory crackdowns might force USDat to restructure its liquidity liabilities. It’s a high-stakes balancing act between DeFi innovation and institutional compliance.

⚠️ LEGAL DISCLAIMER: This article is for informational purposes only and does not constitute financial or investment advice.