New Hampshire Breaks Ground With $100M Bitcoin-Backed Municipal Bond
New Hampshire has quietly taken a historic leap into digital finance. Minutes from the state’s Business Finance Authority (BFA) meetings reveal that the agency has approved its preliminary intent to issue a $100 million municipal bond collateralized by Bitcoin—a first at the U.S. state level.
According to the records from Nov. 17 and 18, the board voted unanimously in favor of a taxable conduit revenue bond for WaveRose Depositor, LLC. The bond will allow firms to borrow against over-collateralized Bitcoin held with a private custodian. Crucially, taxpayers aren’t on the hook; the state simply authorizes and oversees the transaction.
A report from Crypto in America notes that BitGo will custody the Bitcoin securing the bond. With Bitcoin as collateral rather than government backing, investors will be protected by over-collateralization instead of taxes or state funds.
How the Bitcoin-Backed Municipal Bond Will Work
The innovative structure was created by Wave Digital Assets and Rosemawr Management. The model applies traditional municipal bond rules to Bitcoin, giving institutions a familiar regulatory framework with cutting-edge digital collateral.
Les Borsai, co-founder of Wave, described the initiative as a financial bridge between legacy markets and digital assets:
“This structure shows how public and private sectors can responsibly unlock the value of digital asset reserves.”
The borrower will post around 160% of the bond’s value in Bitcoin as collateral. If Bitcoin’s price falls and collateral nears 130%, an automatic liquidation process will protect investors and prevent losses.
According to BFA director James Key-Wallace, fees generated from the bond will fuel the Bitcoin Economic Development Fund, boosting local innovation.
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New Hampshire Pushes Forward on Crypto Policy and Bitcoin Investment
This move follows a series of pro-crypto reforms in the state. In May, New Hampshire became the first state to authorize government investment in cryptocurrency after Governor Kelly Ayotte signed a landmark bill permitting municipalities to invest in both Bitcoin and precious metals.
The state is also considering deregulation for cryptocurrency mining operations. In October, a committee voted to move a pro-mining bill to an interim study after twice facing gridlock in the State Senate.
Even before today’s moves, New Hampshire has been an early crypto adopter. As far back as 2015, lawmakers explored allowing taxes to be paid in Bitcoin. Although the proposal failed in 2016, it foreshadowed the state’s future embrace of digital assets. Many industry advocates have long argued that New Hampshire ranks among the most Bitcoin-friendly regions in the world.
A Bitcoin-Backed Future for U.S. Finance?
New Hampshire’s pioneering Bitcoin-backed municipal bond may mark the beginning of a new era in U.S. state capital markets. If successful, it could inspire other states to fund public-private financial innovation using digital collateral instead of taxpayer guarantees. For institutional investors seeking regulated exposure to Bitcoin, this may be the most significant development yet.
