New Hampshire greenlights $100M municipal bond backed by Bitcoin

New Hampshire has made history by approving the first Bitcoin-backed municipal bond in the United States, a $100 million conduit designed to bring digital assets into traditional debt markets.

The move positions the state as a trailblazer in bridging cryptocurrency with institutional finance, while providing a model that could influence how governments and corporations manage digital assets.

Pioneering Bitcoin-backed bond in the US

New Hampshire’s history of embracing cryptocurrency stretches back nearly a decade, with previous legislative efforts aimed at allowing tax payments in Bitcoin and supporting crypto-friendly policies.

The New Hampshire Business Finance Authority (BFA) has authorised the issuance of a $100 million municipal conduit bond for WaveRose Depositor, LLC.

Unlike traditional municipal bonds, this instrument is secured entirely by Bitcoin held in custody by BitGo, shielding taxpayers from any repayment risk.

Borrowers are required to post approximately 160% of the bond’s value in Bitcoin as collateral, with automatic liquidation triggered if the cryptocurrency’s value falls below roughly 130%.

The bond is structured to allow corporate borrowers to access liquidity without selling their Bitcoin or creating taxable events.

This setup effectively links digital assets with conventional fixed-income rules, creating a fully compliant and institutional-grade framework.

Wave Digital Assets and Rosemawr Management collaborated on the design, while Orrick provided legal guidance to ensure regulatory alignment.

Industry observers highlight that the bond could mark the first step toward integrating Bitcoin and other digital assets into the global debt market, which exceeds $140 trillion, with the US representing over $58 trillion.

The structure offers a template for institutional investors, such as pension funds and retirement plans, seeking regulated exposure to cryptocurrency.

State officials describe the bond as a controlled experiment for assessing Bitcoin as collateral in a fixed-income context.

By establishing clear overcollateralization thresholds and liquidation triggers, the framework mitigates risk while maintaining compliance with traditional municipal finance regulations.

New Hampshire has approved a strategic Bitcoin Reserve

New Hampshire’s approval follows the enactment of the Strategic Bitcoin Reserve bill earlier this year, making the state the first in the US to allow government investment in cryptocurrencies.

Under the law, the state treasury may allocate up to five percent of its holdings to Bitcoin or other large-cap digital assets, either directly or via exchange-traded funds.

The municipal bond leverages this strategic reserve, enabling public and private sectors to collaborate on innovation while using digital assets as high-grade collateral.

Fees generated by the bond, along with any gains on the underlying Bitcoin, will flow into the state’s Bitcoin Economic Development Fund.

This fund is earmarked to support innovation, entrepreneurship, and broader economic growth, demonstrating a deliberate effort to integrate digital finance into local development initiatives.

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