New Hampshire Approves First-Ever $100 Million Bitcoin-Backed Municipal Bond
New Hampshire approved a $100 million municipal bond backed by Bitcoin, a first for both the state and the U.S., potentially opening doors for digital assets in the debt market.Summary
New Hampshire has become the first U.S. state, and the first government globally, to approve a $100 million municipal bond backed by Bitcoin. The bond allows private companies to borrow against over-collateralized Bitcoin held in custody by BitGo, with the state’s Business Finance Authority (BFA) acting as a facilitator and not bearing any repayment risk. This approval follows New Hampshire’s earlier move to authorize its treasury to allocate up to 5% of public funds into digital assets, creating a strategic Bitcoin reserve. Governor Kelly Ayotte hailed the bond as a leadership position in digital finance without risking state funds. The bond structure, designed by Wave Digital Assets and Rosemawr Management, requires borrowers to post 160% of the bond’s value in Bitcoin, with an automated liquidation mechanism at 130% to protect bondholders. Fees from the transaction and any appreciation of the Bitcoin collateral will fund the state’s Bitcoin Economic Development Fund, supporting entrepreneurship and innovation.
(Source：Bitcoin Magazine)