29-05-2025
First major city to potentially launch shocking new financial instrument
New York City could become the first U.S. city to introduce Bitcoin-backed bonds — or 'BitBonds' — if Mayor Eric Adams gets his way.
'It is time for the first time in the history of this city to have a financial instrument that is made for those who are holders of Bitcoin,' Adams said during his speech at the Bitcoin 2025 conference in Las Vegas on Wednesday.
'We need to have a BitBond, and I am going to push and fight to get a BitBond in New York so you can do those same bond investments in New York City,' he added.
The mayor's remarks follow growing momentum behind the BitBond concept, first outlined by the Bitcoin Policy Institute (BPI) earlier this year. BPI envisions the product as a hybrid: a fixed-income instrument that also gives investors upside from Bitcoin's appreciation.
In theory, BitBonds would offer investors a small yield from interest payments and additional gains if Bitcoin's price rises. BPI said such a product could help implement a strategic Bitcoin reserve while easing the long-term burden of U.S. debt repayments.
Adams' comments come weeks after former U.S. President Donald Trump signed an executive order establishing a U.S. Strategic Bitcoin Reserve and directed officials to find 'budget-neutral' ways to acquire more BTC without selling the roughly 200,000 coins the government already holds.
On the regulatory front, Adams also took aim at the state's crypto licensing framework.
'Let's get rid of the Bitcoin license and allow us to have the free flow of Bitcoin in our city,' he said, referencing the NYDFS BitLicense program, which has long been criticized for its strict requirements.
Adams has consistently championed crypto adoption in New York, including pledging to take his first three paychecks in Bitcoin and hosting the city's first-ever 'crypto summit' earlier this month.
Bitcoin (BTC) is currently trading at $107,326, up 1.4% in the past 24 hours. The 24-hour price range is $107,107 to $109,127. As per Kraken's price feeds, BTC is up 57.1% over the past year.
First major city to potentially launch shocking new financial instrument first appeared on TheStreet on May 28, 2025
