New Hampshire Launches First Bitcoin-Backed Municipal Bond
A $100M BTC conduit bond could pave the way for digital assets to enter the $140T global debt market
EXCLUSIVE: New Hampshire just became the first state to approve a municipal bond backed by Bitcoin, a milestone that could pave the way for digital assets to enter the $140 trillion global debt market.
On Monday, the state’s business financing agency, the Business Finance Authority (BFA), approved a first-of-its-kind $100 million Bitcoin-backed conduit bond, letting companies borrow against over-collateralized Bitcoin held by a private custodian.
While BFA is a state entity, the bond isn’t backed by the state or taxpayers. Instead, BFA acts as a conduit, approving and overseeing the deal without taking on repayment risk, while investors are covered by Bitcoin held in custody by BitGo.
The move comes just months after the Granite State became the first in the nation to allow its treasury to invest up to 5% of public funds in digital assets, creating the country’s first strategic Bitcoin reserve.
Governor Kelly Ayotte, who signed the Strategic Bitcoin Reserve bill into law in May, celebrated the milestone.
“I’m proud that New Hampshire is once again first in the nation to embrace new technologies with this historic Bitcoin-backed bond,” she said. “This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance without risking state funds or taxpayer dollars.”
How the Bond Works
Wave Digital Assets, working with muni bond specialist Rosemawr Management, designed the bond to bridge digital assets with traditional debt markets, using Bitcoin as collateral under the same rules that govern municipal and corporate bonds.
GOP Rep. Keith Ammon, who introduced the state’s Strategic Bitcoin Reserve bill, said the bond is effectively a sandbox for testing how Bitcoin can function as high-grade collateral in government finance.
“The BFA is self-funded, so they can partner on this structure, prove out the concept, and eventually it could lead to a true state treasury-issued Bitcoin bond,” Ammon told Crypto In America.
Under the proposed structure, the borrower will post about 160% of the bond’s value in Bitcoin as collateral. If Bitcoin drops below roughly 130%, a liquidation mechanism ensures bondholders are made whole. Ammon said this setup lets borrowers unlock capital without selling their Bitcoin or triggering a taxable event.
According to BFA Executive Director James Key-Wallace, fees from the bond transaction, along with any gains in the Bitcoin collateral, will flow into the Bitcoin Economic Development Fund, a program designed to support innovation, entrepreneurship, and business growth across the state.
Backing the bond is top muni bond law firm Orrick, which helped New Hampshire structure the deal.
“We are excited to support New Hampshire in launching the first municipal security backed by cryptocurrency,” said Orion Mountainspring, partner at Orrick. “This is a game-changer for digital currency and municipal finance.”
Opening the $140T Global Debt Market to Bitcoin
Crypto-backed borrowing has existed in private markets for years, but never in U.S. municipal finance — a market traditionally defined by conservative risk profiles, stable collateral, and decades-old underwriting rules. If New Hampshire’s model succeeds, it could set a blueprint for other states to follow.
“This isn’t just one transaction, it’s the opening of a new debt market,” said Les Borsai, co-founder of Wave Digital Assets. “We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves.”
The global bond market is valued at roughly $140 trillion, with the U.S. market alone at about $58.2 trillion, making it the world’s largest fixed‑income market.
Today, many crypto reserves sit idle like vaults instead of working as active financial tools. Borsai envisions issuers putting these reserves to work by earning yield, backing loans, and supporting economic projects, all within a fully regulated framework. Making this possible requires institutional participation, such as pension funds or retirement plans taking carefully measured exposure to digital assets without increasing overall risk.
The BFA Bitcoin-backed bond, he says, is a model for how crypto can safely integrate with traditional finance and help grow the economy. He added that institutional interest is likely to rise as bond ratings come through, paving the way for more products built on fixed-income instruments and derivatives, not just ETFs, which have seen explosive growth on Wall Street over the past two years.