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The US State of New Hampshire has introduced a Bitcoin-secured municipal bond valued at $100 million.
The move marks one of the most significant attempts yet to connect cryptocurrency with the traditional debt market. The initiative aims to expand financing options for businesses while keeping taxpayers fully insulated from market risk.
State Finance Authority Approves Bitcoin-Pegged Bond
The program is led by the state’s Business Finance Authority (BFA), which approved the Bitcoin-pegged conduit bond earlier this week.
Although the BFA is a state entity, it emphasized that the bond does not rely on government backing. Instead, the authority will supervise the structure while avoiding any repayment obligations.
To safeguard investors, Bitcoin held in BitGo’s custody will serve as the primary collateral.
The bond launch comes weeks after New Hampshire allowed its treasury to allocate up to 5% of public funds to cryptocurrency. This move created the nation’s first state-level strategic Bitcoin reserve.
Governor Ayotte Welcomes New Investment Path
Governor Kelly Ayotte, who signed the Bitcoin reserve bill in May, welcomed the new bond program. She told Crypto America that the initiative can attract fresh investment while maintaining strong safeguards for public funds.
Republican Representative Keith Ammon described the bond as a controlled trial. Accordingly, he said it will help determine whether Bitcoin can function as high-grade collateral in public finance.
According to Ammon, the BFA’s self-funded structure makes it suitable for this early stage. He added that strong results could lead to a future bond issued directly by the state treasury.
Under the approved terms, borrowers must supply Bitcoin worth roughly 160% of the bond’s face value. In the event of market volatility, a liquidation system will protect bondholders if Bitcoin’s value falls below 130%.
Ammon noted that this structure lets firms unlock capital without selling their holdings or drawing extra attention from the IRS.
Orion Mountainspring of Orrick, the municipal bond law firm supporting the project, praised the move. He said the transaction represents a turning point for both crypto and municipal debt.
In parallel, Orrick helped New Hampshire shape the framework, ensuring it meets regulatory requirements while opening the door to new forms of collateralization.
Economic Development Fund to Benefit From Fees
The state plans to direct all fees and any gains from the collateral program into the Bitcoin Economic Development Fund. BFA Executive Director James Key-Wallace said this fund supports entrepreneurship and business expansion, thereby generating broader economic value beyond its immediate financing role.
Wave Digital Assets Helps Build the Bond Structure
Wave Digital Assets co-founder Les Borsai said the bond represents more than a single financial tool. It opens the door to a new category of debt markets built around digital assets.
To support the effort, Wave partnered with Rosemawr Management, a municipal bond specialist, to refine the structure and align it with established municipal-funding standards.
Borsai said the New Hampshire model demonstrates how the public and private sectors can collaborate on responsible crypto-backed financing. Moreover, he noted that the U.S. bond market, valued at over $58 trillion, offers a major opportunity if this structure gains traction.
He also emphasized that many crypto reserves are currently idle, and that this framework could help convert them into functional financial tools.
Finally, Borsai said the design allows pensions and retirement programs to take limited exposure to crypto while managing risk. He believes broader institutional participation will be essential for long-term adoption.