Bitcoin Meets Treasury Debt in VanEck’s BitBond Plan

Crypto News Regulation

VanEck’s BitBond Plan: Bitcoin Meets Treasury Debt in New Proposal

Written by Aaron S.,

Editor-In-Chief

Last Updated: April 16, 2025

Key Takeaways

VanEck’s BitBonds would combine 90% US debt with 10% Bitcoin to help lower borrowing costs;
Even if Bitcoin crashes, BitBonds could still save the government money through lower interest rates;
If Bitcoin returns exceed 4.5% yearly, profits are split evenly between the investor and the government.

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VanEck’s BitBond Plan: Bitcoin Meets Treasury Debt in New Proposal

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Matthew Sigel, head of research at VanEck, has introduced a new idea that mixes Bitcoin BTC $89,693.47 with US government bonds.

Speaking at a Strategic Bitcoin Reserve Summit 2025 on April 15, he suggested a product called "BitBonds", a type of 10-year Treasury bond that includes a small portion tied to Bitcoin’s value.

Under this proposal, each bond would be made up of 90% traditional government debt and 10% exposure to Bitcoin. Sigel believes this setup could help the US lower borrowing costs and attract more buyers, especially with around $14 trillion in government debt coming due in the next few years.

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He explained that interest rates are currently high, and to keep investors interested, the government needs to offer more than just the usual terms. Including Bitcoin may appeal to buyers looking for a way to protect themselves from inflation.

Even in a worst-case scenario, where Bitcoin loses all its value, Sigel said BitBonds could still save the government money. If these bonds are issued with a 1% or 2% interest rate, that is still cheaper than the current market rate of 4%.

If Bitcoin grows in value and provides more than a 4.5% return per year, those extra profits would be split equally between the bondholder and the government.

However, Sigel also noted that Bitcoin would need to grow quickly enough for investors to compensate for the lower regular bond returns.

On April 14, Bo Hines, who leads the Presidential Council of Advisers for Digital Assets, outlined options to grow Bitcoin reserves without using taxpayer money. What are they? Read the full story.