New Hampshire Pioneers U.S.'s First $100M Bitcoin-Backed Municipal Bond

New Hampshire has authorized the nation's first $100 million Bitcoin-backed municipal bond, a groundbreaking move that integrates cryptocurrency into public financing. The bond, approved by the state's Business Finance Authority (BFA), enables private companies to borrow against over-collateralized Bitcoin held by institutional custodian BitGo, with no taxpayer funds at risk.

The structure mandates 160% Bitcoin collateral, and a liquidation mechanism activates if the ratio drops near 130%, safeguarding investors from market fluctuations. Developed by Wave Digital Assets and Rosemawr Management, with legal counsel from Orrick, the bond's fees and collateral gains will fuel the Bitcoin Economic Development Fund, supporting state-level entrepreneurship and innovation.

Governor Kelly Ayotte backed the initiative, emphasizing it opens new investment avenues without exposing state finances. The BFA's Executive Director, James Key-Wallace, confirmed that the authority administers the transaction but assumes no repayment risk. This bond could serve as a model for other states, potentially linking Bitcoin to the $140 trillion global debt market and fostering institutional adoption through regulated frameworks.