New Hampshire has approved the world’s first $100 million Bitcoin-backed municipal bond, marking a major step in merging crypto with traditional finance.
Quick Summary – TLDR:
- New Hampshire becomes the first state and government entity globally to approve a Bitcoin-backed bond.
- The $100 million bond allows companies to borrow using Bitcoin as over-collateralized security.
- The bond structure avoids taxpayer risk and channels returns into a state-run crypto development fund.
- This move could set a precedent for integrating digital assets into the $140 trillion global debt market.
What Happened?
The Business Finance Authority of New Hampshire has officially approved a $100 million Bitcoin-backed municipal bond, becoming the first government in the world to do so. The innovative financial structure is designed to allow companies to raise funds using over-collateralized Bitcoin while protecting taxpayers and promoting crypto-based economic growth.
BREAKING: 🇺🇸 New Hampshire approves and launches the first-ever #Bitcoin-backed municipal bond.
— Bitcoin Magazine (@BitcoinMagazine) November 19, 2025
The USA is embracing Bitcoin 🚀 pic.twitter.com/1LKTv8ovha
A First in Global Finance
New Hampshire’s move to launch a Bitcoin-backed bond is a pioneering effort in both the crypto and public finance spaces. The bond, structured by Wave Digital Assets and Rosemawr Management, is not backed by the state or its taxpayers. Instead, the Business Finance Authority (BFA) acts as a facilitator. All repayment risk is secured by Bitcoin collateral, which will be safely held in custody by BitGo, a leading digital asset custodian.
- Borrowers must deposit 160% of the bond value in Bitcoin as collateral.
- If the collateral dips below 130%, a built-in liquidation mechanism activates to protect bondholders.
- This structure avoids taxable events, letting businesses access capital without selling their crypto.
State Representative Keith Ammon, a long-time advocate of digital assets, referred to the bond as a “sandbox” to test how Bitcoin can serve as high-grade collateral in the public sector.
Backed by Strategic Bitcoin Policy
This bond builds on New Hampshire’s earlier pro-Bitcoin policies, especially the Strategic Bitcoin Reserve bill (HB 302), signed into law by Governor Kelly Ayotte in May 2025. That legislation authorized the state to allocate up to 5% of public treasury funds into digital assets like Bitcoin, setting a bold precedent.
Governor Ayotte praised the bond’s approval, stating:
Under HB 302:
- Only digital assets with a market cap over $500 billion (currently just Bitcoin) are eligible.
- Funds must be held with U.S.-regulated custodians to ensure safety and transparency.
- The move is aimed at modernizing public fund strategy while keeping risk low.
Fueling Innovation with Crypto Returns
Returns generated from the bond, both from fees and appreciation of Bitcoin collateral will be funneled into the state’s Bitcoin Economic Development Fund. This fund is dedicated to boosting entrepreneurship, startups, and innovation across the Granite State.
James Key-Wallace, executive director of the BFA, noted that this structure not only supports financial innovation but also contributes directly to statewide economic development without putting public money on the line.
Bridging Digital Assets and Traditional Markets
Wave Digital Assets co-founder Les Borsai emphasized the broader vision behind the bond, saying:
Supporters believe this is more than just a one-off experiment. With the global debt market valued at $140 trillion, and the U.S. accounting for $58 trillion, this structure may pave the way for a new class of crypto-collateralized finance in the public and private sectors alike.
SQ Magazine Takeaway
I think what New Hampshire has done here is more than just financial news. It is a statement. This bond proves that crypto can be safe, structured, and part of real-world finance, not just a digital experiment. The best part? It’s not using taxpayer money. Instead, it’s fueling innovation and growth by putting Bitcoin to work in a regulated, strategic way. This could change how states think about digital assets and honestly, I’m here for it.
