The "BTC Bond Company" was established, aiming for an acquisition of 1 trillion USD BTC.

The company plans to connect institutional capital with BTC through a regulated structured product framework and third-party accomplice.

Source: cryptoslate

Compiled by: Blockchain Knight

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On April 7, Pierre Rochard announced the establishment of a new company focused on BTC-supported structured financing, named “The Bitcoin Bond Company,” with the goal of acquiring $1 trillion worth of BTC on behalf of its clients before 2046.

Rochard served as the Vice President of Research at Riot Platforms and will be the Chief Executive Officer of this new company focused on BTC.

The company plans to connect institutional capital with BTC through a regulated structured product framework and third-party accomplice.

BTC Products that Meet Institutional Needs

According to Rochard, the company’s target customers will be credit allocators seeking volatility protection and equity risk-takers looking for excess returns on BTC. Depending on market conditions, its long-term goal includes acquiring $1 trillion worth of BTC for customers over the next 21 years.

When explaining the timing and motivation for the establishment of the company to CryptoSlate, he further pointed out that since he first learned about BTC, he has been thinking about the concept of establishing a BTC-backed securitization company, which aligns with his background in asset-backed finance.

Rochard stated that this idea became more feasible after Donald Trump was elected president, as it marked a shift in the regulatory landscape.

He added, “Looking ahead, the SEC will no longer be influenced by politics but will remain neutral, which means that financial products supported by BTC will be subject to balanced regulation to protect the integrity of the U.S. capital markets. This will provide the necessary confidence for mature financial institutions to constructively engage in the BTC market.”

Rochard emphasized that his vision is to expand the utility of BTC by packaging BTC assets into structured financial instruments that meet institutional requirements for transparency, regulation, and risk management.

This approach is consistent with the broader trend of institutional products built on crypto native assets, including exchange-traded products (ETPs) and asset-backed notes.

The announcement states: “The mission of the BTC bond company is to establish long-term partnerships between credit allocators and risk bearers. We can provide transparent, regulated, and efficient risk transfer for global strategic reserve assets through BTC-supported structured financing, thus unlocking value for capital markets.”

He also added that the recent launch of the BTC ETF has successfully validated market demand, and after evaluation, it is believed that the indicators of these funds make them “the most successful product launch case in the history of the financial industry.”

Rochard believes that institutional investors are typically constrained by volatility, while risk-seeking participants are looking for leverage opportunities. He thinks that the role of BTC bond companies is to connect these two types of investors through structured instruments, bridging the gap between them.

The mission of the BTC bond company is to connect these two types of investors through responsible, BTC-backed products, creating long-term value for both parties.

Practicality and Satoshi Nakamoto’s Vision

Rochard views the establishment of the company as part of a broader effort to realize BTC as a decentralized electronic cash’s original utility.

He said that the BTC market categorizes participants into four types: deniers, investors who are cautious about price fluctuations, speculators attempting to gain excess returns through BTC, and fully autonomous users who have completely adopted BTC.

He emphasized that decentralization remains the core utility of BTC, providing users with sovereign control over their capital. Rochard finally stated that the capital markets will increasingly recognize BTC as a strategic collateral asset.

He said, “Capital markets view BTC as a unique collateral diversification tool, which is inevitable. In many different contexts, such as sovereign debt issuance, corporate convertible bonds, and asset-backed securities, investors with different objectives and risk tolerances can be found. The growth of the market will drive demand for the underlying assets of BTC and accelerate the adoption flywheel effect.”