Solstice Launches First STRC Product on Solana

The Solana product packages exposure to Strategy’s STRC into DeFi tranches backed by USX. It blends dividend income with price risk and is designed for both senior and junior holders.

Key Takeaways

• Solstice Finance launched strcUSX on Solana, the first STRC-linked structure on the network.
• Users deposit USX into a vault and receive SR-strcUSX or JR-strcUSX, with roughly 7% and more than 20% APY, respectively.
• The product tracks the economics of Strategy’s preferred stock STRC, while junior holders absorb losses before senior holders do.

Solstice Finance has introduced a Solana-based product that gives DeFi users structured exposure to the dividend income and price swings of Strategy’s preferred stock STRC. The Zug-based protocol says it is the first STRC-linked structure on Solana.

How strcUSX Works

The product, called strcUSX, does not give users direct ownership of STRC shares or a tokenized claim on them. Instead, users deposit USX, Solstice’s dollar-linked settlement token, into a vault and receive one of two Solana tokens that reflect the economics of a portfolio of Nasdaq-listed preferred stock.

SR-strcUSX, the senior token, is paid first and targets an annual return of 7%. JR-strcUSX, the junior token, receives whatever income is left after senior holders are covered and targets more than 20% APY. In exchange for that higher return, junior holders take the first losses from changes in the value of the STRC position before senior holders are affected.

Link to Strategy

STRC, also known as Stretch, is Strategy’s Variable Rate Series A Perpetual Preferred Stock. The instrument is meant to generate income for investors while also helping fund the company’s Bitcoin purchases. The preferred stock is designed to trade near $100 (€87) par, and the dividend rate can be adjusted monthly to help keep it there.

That setup has faced pressure since STRC slipped below $100 (€87) in June and touched a low of $89 (€77). On Monday, Strategy also said it sold 1,690 Bitcoin for $108.6 million (€94.1 million) to repurchase 1,152,020 shares of its variable preferred stock STRC for the same amount. After the transaction, the company’s Bitcoin holdings fell to 840,447 BTC.

Why It Matters

For European crypto readers, the product is another example of how DeFi is being used to turn traditional market structures into onchain tokens. By combining a dollar-linked settlement token, tranches, and returns tied to a listed preferred stock, it creates a hybrid product that may appeal to both crypto investors and traditional capital markets participants.

Solstice says users can withdraw after a seven-day unlock period, or exit immediately by paying a fee. The yield is reflected in the token’s exchange rate rather than through a separate payout, so the product is built around economic exposure more than a standard cash distribution. Interest is also building in similar onchain structures elsewhere in the market, including tokenized stocks as collateral on other networks.