New Hampshire has made history once again this time by becoming the first U.S. state to launch a Bitcoin-backed municipal bond, marking a major milestone in the integration of digital assets into traditional public finance.
On Nov. 17, the state’s Business Finance Authority (BFA) approved a $100 million Bitcoin-backed conduit bond, a first-of-its-kind financial instrument designed to help businesses access capital without having to sell their Bitcoin holdings. The approval was first reported by journalist Eleanor Terrett.
How the Bitcoin-Backed Municipal Bond Works
Traditional municipal bonds are secured either by government credit or revenue from public projects. New Hampshire’s new bond breaks the mold by using over-collateralized Bitcoin instead.
Here’s how the structure is designed:
- Borrowers must post 160% of the bond’s value in Bitcoin as collateral.
- If Bitcoin’s value falls below 130%, an automated liquidation mechanism protects bondholders.
- BitGo will serve as the qualified third-party custodian holding the Bitcoin.
- The BFA will oversee and approve the bond, but it will not assume repayment risk.
This innovative model allows companies to borrow against their Bitcoin without selling it—avoiding taxable events and enabling them to maintain long-term exposure to the asset.
Rep. Keith Ammon, one of the leading policymakers behind the state’s Bitcoin initiatives, said the bond setup “unlocks capital without forcing borrowers to give up their Bitcoin,” calling it a win for both innovation and financial flexibility.
A Boost for New Hampshire’s Bitcoin Economic Strategy
Fees generated from the bond, as well as any appreciation on the collateral, will flow into the Bitcoin Economic Development Fund a state pool dedicated to supporting startups, technology innovation, and business growth.
The deal was structured by Wave Digital Assets and Rosemawr Management, which aim to build a scalable, compliant bridge between the $140 trillion global bond market and emerging digital-asset infrastructure.
Wave co-founder Les Borsai emphasized the broader significance of the initiative:
“This is not just one transaction—it’s the opening of an entirely new debt market.”
New Hampshire’s Growing Leadership in Bitcoin Policy
This is not the state’s first major move in crypto this year. In early 2025, New Hampshire became the first U.S. state to establish a strategic Bitcoin reserve, allowing the treasury to allocate public funds into Bitcoin—subject to strict eligibility criteria, including a $500+ billion market cap threshold, effectively limiting the reserve to BTC.
Governor Kelly Ayotte praised the new Bitcoin-backed bond program, saying it positions New Hampshire as a national leader in digital-finance innovation “without risking taxpayer dollars.”
Lawmakers are also advancing the Blockchain Basic Laws Act, a bill that would introduce broad legal protections for miners, developers, node operators, and self-custody users, while creating a dedicated blockchain dispute docket within the state’s superior court.
With its latest bond approval, New Hampshire appears poised to become one of the most crypto-forward states in the U.S., setting precedents that other regions may follow as digital assets increasingly converge with traditional capital markets.
