A Bitcoin Bond is a principal-protected note that combines the security of U.S. Treasury Notes (UST) with the growth potential of Bitcoin. Your principal is allocated to UST so it is fully protected at maturity, while a separate allocation captures Bitcoin's price performance, giving you Bitcoin upside without risking your original investment. Bitcoin Bonds are available to individuals, businesses, and governments.
How It Works
- Principal Protection: A portion of your investment is placed in U.S. Treasury Notes, so your principal is returned in full at maturity regardless of Bitcoin's performance.
- Bitcoin Upside: The remaining allocation is used to gain exposure to Bitcoin, and your yield moves with Bitcoin's performance.
- Custody: The Bitcoin backing the bond is held in a bankruptcy-remote account, preventing claims and providing long-term security.
- Borrowing: Bitcoin Bonds can be used as collateral to borrow against the UST portion of your bond without selling your position or being subjected to margin calls.
- Collateral (Coming Soon): Your Bitcoin Bond can also be used as collateral to secure a Self-Repaying Mortgage (SRM).
Terms
- Duration: 5-year and 10-year terms available
- Distributions: Paid semiannually in prUSD
- At Maturity: You receive your original principal plus any interest earned
Illustrative Returns
The examples below are illustrative only and not financial advice — actual returns depend on Bitcoin's performance over the term.
- 10-year term at a 30% Bitcoin CAGR ≈ 40% APY
- 5-year term at a 40% Bitcoin CAGR ≈ 17.9% APY
Fees
- No entry or exit fees
- Cost of Issuance: 2% at every tier
- Performance Fee (Based on Loyalty Tier): Basic 20%, Silver 15%, Gold 10%, Diamond 5%
Eligibility
Bitcoin Bonds are offered as a private placement under Regulation D 506(c). Investors must be qualified or accredited to participate.