The state of New Hampshire became the first in the USA to approve a municipal bond backed by Bitcoin, which could pave the way for digital assets into the $140 trillion debt market.
- The state agency Business Finance Authority (BFA) approved a $100 million bond where BTC is used as collateral, held by the custodian BitGo.
- The bond is not backed by state or taxpayer funds — BFA acts as an intermediary, overseeing the deal structure without taking on debt risks.
- The issuer deposits about 160% of the bond's value in BTC; if the price of Bitcoin falls below 130%, the assets are liquidated to protect investors.
- This is the first instance of using Bitcoin as collateral in the US municipal bond sector.
- In May, New Hampshire became the first state to allow the treasury to invest up to 5% of reserves in digital assets, creating a strategic Bitcoin fund.
- Governor Kelly Ayotte stated that this is "a new step towards making the state a leader in digital finance without budget risk."
- The deal structure was developed by Wave Digital Assets and Rosemawr Management, with legal support provided by Orrick, a leading firm in municipal securities.
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