Cayman Islands-registered Buck Labs has introduced the "BUCK" crypto token, positioning it as a yield-bearing “savings coin” aimed at users seeking returns on dollar-denominated crypto holdings without relying on traditional stablecoins.

The token is backed by shares in Strategy (MSTR) shares, the largest corporate holder of bitcoin with nearly 675,000 BTC on its balance sheet.

BUCK is initially priced at $1 and is designed to distribute rewards currently targeted at around 7% annually, with returns accruing on a minute-by-minute basis, Travis VanderZanden, founder and CEO of Buck Labs, told CoinDesk. BUCK is not marketed as a stablecoin and does not maintain a hard dollar peg, meaning its price may fluctuate based on market conditions.

Rewards distributed to holders are funded indirectly through the foundation’s treasury holdings of Strategy’s bitcoin-linked perpetual preferred stock, known as STRC, which pays periodic income to the treasury. Strategy and its chairman Michael Saylor are not affiliated with Buck and do not sponsor or endorse the token.

“Every healthy economy needs both a way to spend and a way to save, which is why Buck introduces the SavingsCoin,” said VanderZanden, who previously held leadership roles at Bird, Lyft and Uber. “Stablecoins have become very good at moving money, but Buck is designed for what happens in between, earning rewards on idle capital.

BUCK is structured as a governance token, with holders allowed to vote on reward distribution and other protocol decisions. The company said the token is intended for non-U.S. users initially and is not being offered as a security.

VanderZanden said the product is aimed at users who want predictable crypto-based returns without actively trading. “People want a simple way to earn rewards in crypto without becoming speculators,” he said. “Buck is designed to make saving in crypto more intuitive.”

Buck Labs said the product is designed to complement, rather than replace, existing stablecoins by offering a savings-focused alternative for longer-term holdings.