{"id":127296,"date":"2025-04-16T13:15:42","date_gmt":"2025-04-16T13:15:42","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127296"},"modified":"2025-04-16T13:15:42","modified_gmt":"2025-04-16T13:15:42","slug":"bitcoin-treasury-bonds-may-help-us-refinance-14t-debt-vaneck-exec","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127296","title":{"rendered":"Bitcoin Treasury bonds may help US refinance $14T debt \u2014 VanEck exec"},"content":{"rendered":"

Source: Cointelegraph.com NewsVanEck\u2019s head of research has pitched a new type of US Treasury bond partially backed by Bitcoin to help refinance $14 trillion in US debt.
\nMatthew Sigel pitched the concept of \u201cBitBonds\u201d \u2014 US Treasury bonds with exposure to Bitcoin (BTC) \u2014 at the Strategic Bitcoin Reserve Summit 2025 on April 15.
\nThe new 10-year bonds would be composed of 90% traditional debt and 10% BTC exposure, Sigel said, appealing to both the Treasury and global investors.
\nEven in a scenario where Bitcoin \u201cgoes to zero,\u201d BitBonds would allow the US to save money to refinance an estimated $14 trillion of debt that will mature in the next three years, he said.
\nBitcoin to boost investor demand for T-bonds
\n\u201cInterest rates are relatively high versus history. The Treasury must maintain continued investor demand for bonds, so they have to entice buyers,\u201d Sigel said during the virtual event.
\nMeanwhile, bond investors want protection from US dollar inflation and asset inflation, which makes Bitcoin a good fit as a component of the bond, as the cryptocurrency has emerged as an inflation hedge.
\nAn excerpt from Matthew Sigel\u2019s presentation on Bitbonds at the Strategic Bitcoin Reserve Summit 2025. Source: Matthew Sigel With the proposed structure and a 10-year term, a BitBond would return a \u201c$90 premium, along with whatever value that Bitcoin contains,\u201d Sigel said, adding that investors would receive all the Bitcoin gains up to a maximum annualized yield to maturity of 4.5%.
\n\u201cIf Bitcoin gains are big enough to provide that above a 4.5% annualized yield, the government and the bond buyer split the remaining gains 50 over 50,\u201d he said.
\nUpsides and downsides
\nCompared to standard bonds, the proposed 10-year BitBonds would offer the investor substantial gains in a scenario where Bitcoin gains exceed the break-even rates, Sigel said.
\nA downside, however, is that Bitcoin must attain a \u201crelatively high compound annual growth rate\u201d on lower coupon rates in order for the investor to break even, he added.
\nSource: Matthew Sigel From the government\u2019s perspective, if they were able to sell the bond at a coupon of 1%, the government would save money \u201ceven if Bitcoin goes to zero,\u201d Sigel estimated, adding:
\n\u201cThe same thing if the coupon is sold at 2%, Bitcoin can go to zero, and the government still saves money versus the current market rate of 4%. And it\u2019s in these 3% to 4% coupons where Bitcoin has to work in order for the government to save money.
\nPrevious BitBonds pitches to government
\nWhile the idea of crypto-backed government bonds is not new, Sigel\u2019s BitBond pitch follows a similar proposal by the Bitcoin Policy Institute in March.
\nThe BPI estimated the program could generate potential interest savings of $70 billion annually and $700 billion over a 10-year term.
\nTreasury bonds are debt securities issued by the government to investors who loan money to the government in exchange for future payouts at a fixed interest rate.
\nRelated: Bitcoin could hit $1M if US buys 1M BTC \u2014 Bitcoin Policy Institute
\nCrypto-enabled bonds would be linked to cryptocurrencies like Bitcoin, allowing investors to gain exposure to potentially more enticing rewards.
\nSource: Bitcoin Policy Institute As the US government grows bullish on crypto under President Donald Trump\u2019s administration, the narrative for potential Bitcoin-enhanced Treasury bonds has been on the rise.
\nMagazine: Bitcoin eyes $100K by June, Shaq to settle NFT lawsuit, and more: Hodler\u2019s Digest, April 6 \u2013 12Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsVanEck\u2019s head of research has pitched a new type of US Treasury bond partially backed by Bitcoin to help refinance $14 trillion in US debt. Matthew Sigel pitched… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127296"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127296"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127296\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127296"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}