--- title: "New Hampshire Breaks Ground with First Bitcoin-Backed $100M Bond" date: 2025-11-19 author: "Barry Elad" featured_image: "https://sqmagazine.co.uk/wp-content/uploads/2025/11/new-hampshire-approves-first-bitcoin-backed-100m-bond.jpg" categories: - name: "Cryptocurrency" url: "/crypto.md" tags: - name: "News" url: "/tag/news.md" --- # New Hampshire Breaks Ground with First Bitcoin-Backed $100M Bond 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](https://sqmagazine.co.uk/bitcoin-statistics/)** while protecting taxpayers and promoting crypto-based economic growth. > BREAKING: 🇺🇸 New Hampshire approves and launches the first-ever [\#Bitcoin](https://twitter.com/hashtag/Bitcoin?src=hash&ref_src=twsrc%5Etfw)-backed municipal bond. > > The USA is embracing Bitcoin 🚀 [pic.twitter.com/1LKTv8ovha](https://t.co/1LKTv8ovha) > > — Bitcoin Magazine (@BitcoinMagazine) [November 19, 2025](https://twitter.com/BitcoinMagazine/status/1991111708006564079?ref_src=twsrc%5Etfw) ## 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: “ I’m proud that New Hampshire is once again first in the nation to embrace new technologies with this historic Bitcoin-backed bond. Kelly AyotteGovernor – New Hampshire 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: “ Our goal is to bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant, and globally scalable. Les BorsaiCo-Founder – Wave Digital Assets 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’s 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.