Matt Cole: Digital credit could reach $3 trillion, offers less volatility than Bitcoin, and appeals to risk-averse investors | The Wolf Of All Streets

Digital credit's potential $3 trillion market size could overshadow Bitcoin with its stability and appeal to risk-averse investors.

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Add us on Google by Editorial Team May. 31, 2026

Key takeaways

Digital credit is poised to become a multitrillion-dollar market, potentially reaching $3 trillion.
Products like Stretch and SADA show less volatility than Bitcoin during market downturns, offering a more stable investment.
Digital credit could represent at least 1% of the overall credit market, which is significantly larger than Bitcoin’s current market cap.
Digital credit is more appealing to risk-averse investors compared to Bitcoin due to its simpler sales pitch and stable returns.
Digital credit products like Stretch and SADA provide less volatility and risk compared to Bitcoin, making them attractive to certain investors.
While digital credit products are ideal for retail investors, they may not suit institutional investors seeking more volatility.
The amplification ratio through SATA growth could reach 60%, significantly impacting capital-raising capabilities.
SADA offers higher volatility and yield compared to Stretch, which is seen as less risky with lower volatility and yield.
Convertible notes have negative convexity, making them riskier compared to preferred equity.
The cost of capital for buying Bitcoin is reasonable if Bitcoin appreciates significantly over time.
Digital credit products are positioned to capture a significant portion of the credit market, driven by their stability and appeal to risk-averse investors.
The potential growth of digital credit highlights a major market opportunity compared to Bitcoin’s current market cap.
The strategic insights into capital raising and product suitability emphasize the evolving landscape of digital finance.

Guest intro

Matt Cole is Chief Executive Officer and Chief Investment Officer of Strive Asset Management, where he leads the firm’s Bitcoin-focused strategy and structured finance initiatives. He previously managed a $70 billion Treasury portfolio and has deep institutional investing experience, including direct engagement with the Fed and US Treasury during quantitative easing.

The potential of digital credit

Digital credit could become a multitrillion-dollar market, potentially reaching $3 trillion. “I look at the credit market it’s $300,000,000,000,000… digital credit will at least be 1% of that so 3,000,000,000,000.” – Matt Cole
Digital credit products like Stretch and SADA show less volatility than Bitcoin during market downturns. “In a big sell off for bitcoin they showed substantially less volatility than bitcoin and then also rebounded back to par while bitcoin was still down.” – Matt Cole
Digital credit could represent at least 1% of the overall credit market, which is significantly larger than Bitcoin’s current market cap. “I look at the credit market it’s $300,000,000,000,000, the overall credit market I think conservatively digital credit will at least be 1% of that so 3,000,000,000,000 which is bigger than bitcoin’s market cap today.” – Matt Cole
Digital credit is a simpler sale for investors compared to Bitcoin, making it more appealing to risk-averse individuals. “When I walk in and pitch a bitcoin to some board… it’s 15 conversations… if I come in and say hey 11 and a half percent yield on this product they don’t even have to make a call to the ceo.” – Matt Cole
Digital credit products like Stretch and SADA provide less volatility and risk compared to Bitcoin. “…in a big sell off for bitcoin they showed substantially less volatility than bitcoin and then also rebounded back to par while bitcoin was still down…” – Matt Cole
Digital credit products may not be suitable for institutional investors who prefer more volatility. “…I think digital credit through products like stretch and sada are perfect retail products…they may not be great institutional products because they might want more volatility…” – Matt Cole
The amplification ratio through SATA growth could reach 60%, significantly impacting capital-raising capabilities. “…if we get up to as an example 60% amplification through SATA growth which I think is a real possibility and we feel very comfortable with the risk there we may or may not be in a position to raise you know half $2,000,000,000 through a second preferred equity instrument…” – Matt Cole
SADA offers higher volatility and yield compared to Stretch, which is seen as less risky with lower volatility and yield. “…the way that people would frame it generally would be that Stretch is you know slightly less risky and a little bit lower volatility lower yield SADA has a little bit higher volatility but still low volatility higher yield…” – Matt Cole
Convertible notes have negative convexity, making them riskier compared to preferred equity. “…it’s actually a convexity issue so convexity meaning how does that convertible note perform on the downside and then on the upside…preferred equity you just have that interest obligation you don’t have to repay the principal ever…it’s that negative convexity in both directions in the convertible note…” – Matt Cole
The cost of capital for buying Bitcoin can be viewed as reasonable if Bitcoin appreciates significantly over time. “…what you’re underwriting as a as a bitcoin bull is what happens if bitcoin over the next ten or fifteen years averages somewhere between a 20% annual compounded growth rate to a 40%… especially with bitcoin down here maybe 30% plus…” – Matt Cole

Stability and volatility in digital credit products

Digital credit products like Stretch and SADA offer less volatility than Bitcoin during market downturns, providing a more stable investment option.
In a big sell off for bitcoin they showed substantially less volatility than bitcoin and then also rebounded back to par while bitcoin was still down.

— Matt Cole
These products are appealing to risk-averse investors due to their stability and simpler sales pitch compared to Bitcoin.
When I walk in and pitch a bitcoin to some board… it’s 15 conversations… if I come in and say hey 11 and a half percent yield on this product they don’t even have to make a call to the ceo.
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— Matt Cole
Digital credit products may not suit institutional investors seeking more volatility, highlighting a market segmentation opportunity.
…I think digital credit through products like stretch and sada are perfect retail products…they may not be great institutional products because they might want more volatility…

— Matt Cole
SADA offers higher volatility and yield compared to Stretch, which is seen as less risky with lower volatility and yield.
…the way that people would frame it generally would be that Stretch is you know slightly less risky and a little bit lower volatility lower yield SADA has a little bit higher volatility but still low volatility higher yield…

— Matt Cole
The distinction between Stretch and SADA highlights the diverse risk-return profiles available in digital credit products.
Investors can choose between lower-risk, lower-yield options like Stretch and higher-risk, higher-yield options like SADA.
The strategic insights into product suitability emphasize the evolving landscape of digital finance and investor preferences.

The growth potential of digital credit

Digital credit is positioned to capture a significant portion of the credit market, driven by its stability and appeal to risk-averse investors.
Digital credit could become a multitrillion-dollar market, potentially reaching $3 trillion. “I look at the credit market it’s $300,000,000,000,000… digital credit will at least be 1% of that so 3,000,000,000,000.” – Matt Cole
The potential growth of digital credit highlights a major market opportunity compared to Bitcoin’s current market cap.
I look at the credit market it’s $300,000,000,000,000, the overall credit market I think conservatively digital credit will at least be 1% of that so 3,000,000,000,000 which is bigger than bitcoin’s market cap today.

— Matt Cole
The amplification ratio through SATA growth could reach 60%, significantly impacting capital-raising capabilities.
…if we get up to as an example 60% amplification through SATA growth which I think is a real possibility and we feel very comfortable with the risk there we may or may not be in a position to raise you know half $2,000,000,000 through a second preferred equity instrument…

— Matt Cole
The strategic insights into capital raising and product suitability emphasize the evolving landscape of digital finance.
Digital credit products like Stretch and SADA provide less volatility and risk compared to Bitcoin, making them attractive to certain investors.
…in a big sell off for bitcoin they showed substantially less volatility than bitcoin and then also rebounded back to par while bitcoin was still down…

— Matt Cole
The cost of capital for buying Bitcoin is reasonable if Bitcoin appreciates significantly over time.
…what you’re underwriting as a as a bitcoin bull is what happens if bitcoin over the next ten or fifteen years averages somewhere between a 20% annual compounded growth rate to a 40%… especially with bitcoin down here maybe 30% plus…

— Matt Cole
The potential growth of digital credit underscores the transformative potential of digital assets in the financial landscape.