New Hampshire Makes History with $100M Bitcoin-Backed Municipal Bond

In a milestone that underscores shifting attitudes toward digital assets in public finance, New Hampshire has approved a $100 million municipal bond secured by Bitcoin collateral. This represents the first time any U.S. state — and any government globally — has green-lit such a structure, opening a potential pathway for crypto-backed instruments to access the $140 trillion global debt market. The approval came Monday through the state’s Business Finance Authority (BFA), which authorized a conduit bond allowing private companies to borrow capital while their Bitcoin remains locked as security, according to reporting from Eleanor Terrett at Crypto in America.

Critically, the state itself shoulders no risk. The BFA acts purely as a facilitator, approving and overseeing the arrangement, while all repayment obligations rest on the Bitcoin collateral held in custody by BitGo. Governor Kelly Ayotte praised the decision, stating: “I’m proud that New Hampshire is once again first in the nation to embrace new technologies with this historic Bitcoin-backed bond. This positions us as a leader in digital finance without risking state funds or taxpayer dollars.”

Why This Matters: Bitcoin Enters Institutional Debt Markets

The significance of this approval extends beyond New Hampshire. For years, crypto-backed lending has operated in private markets—largely unregulated and fragmented. But when a U.S. municipal authority adopts a crypto-collateralized debt framework using standardized rules, it signals that digital assets can function within formal financial infrastructure. The $140 trillion global debt market has historically relied on traditional collateral. Bitcoin’s entry into this space, even at modest scale, represents a structural shift.

What makes the New Hampshire bond especially notable is that it doesn’t require borrowers to liquidate their Bitcoin holdings to access capital. This structure avoids triggering taxable events—a feature that appeals to companies and entities with long-term crypto positions. For holders reluctant to sell and incur tax liabilities, this financing option fills a genuine gap.

The Collateral Framework: How Risk Is Managed

Wave Digital Assets, partnering with Rosemawr Management and municipal bond specialist counsel, designed the bond structure to apply traditional muni-bond protections to Bitcoin collateral. The framework requires borrowers to post approximately 160% of the bond’s value in Bitcoin. Should that collateral fall below roughly 130%, an automated mechanism triggers liquidation, ensuring bondholders remain fully protected.

This dual-threshold system creates a buffer. Borrowers benefit from price appreciation but face downside protection for lenders. Republican State Representative Keith Ammon, who authored New Hampshire’s Bitcoin reserve legislation, called the bond a “sandbox” for testing Bitcoin’s viability as high-grade collateral in public finance. Top-tier law firm Orrick—one of the nation’s leading municipal finance practices—helped architect the deal, lending further credibility to the structure’s sophistication.

New Hampshire’s Strategic Pivot: From Reserve to Financing Tool

This bond launch builds on New Hampshire’s earlier policy moves. In May 2025, Governor Ayotte signed HB 302 into law, making New Hampshire the first state to establish a “Strategic Bitcoin Reserve.” The legislation authorized the state treasurer to purchase digital assets with a market capitalization exceeding $500 billion—currently only Bitcoin qualifies—while capping holdings at 5% of total state funds.

HB 302 took effect 60 days after passage and imposed strict custody requirements: all digital assets must be held in U.S.-regulated custody, whether through state-controlled multisig wallets, qualified custodians, or exchange-traded products. This balanced New Hampshire’s appetite for digital assets against fiscal responsibility and transparency concerns.

The bond transaction now extends this strategy. Fees generated from the $100 million offering—plus any appreciation in the Bitcoin collateral itself—flow into New Hampshire’s Bitcoin Economic Development Fund, designed to support entrepreneurship, business growth, and technological innovation across the state. In effect, New Hampshire has created a closed loop: the state accumulates Bitcoin, that Bitcoin becomes collateral for private borrowing, and the proceeds fund local development.

What Could Come Next: A Blueprint for Other States

If this pilot succeeds, it likely won’t remain New Hampshire’s exclusive innovation. Other states exploring ways to modernize their funding tools or diversify treasury reserves may adopt similar frameworks. The precedent matters: what was once confined to private crypto markets—collateralized lending—now operates under public municipal authority with professional oversight and standardized terms.

For states considering strategic Bitcoin reserves but hesitant about volatility, a collateralized bond framework offers a middle path. They can hold Bitcoin for long-term appreciation while simultaneously monetizing that position to fund public priorities. New Hampshire’s willingness to move first—and to do so with institutional rigor—positions it as the proving ground for digital asset integration in public finance.

The approval signals that governments are no longer treating Bitcoin as speculative fringe. Instead, they’re asking practical questions: How do we manage risk? How do we apply existing financial rules to new assets? How do we serve public and private interests? New Hampshire’s answers—embedded in this $100 million municipal bond—may shape the next phase of public crypto adoption.