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 <p><strong>Key Highlights</strong></p>
 <ul>
  <li>This marks the first crypto-backed product in U.S. municipal finance, setting a potential model for other states to follow.</li>
  <li>The $100M Bitcoin-backed conduit bond requires borrowers to post 160% BTC collateral, with automatic liquidation protecting investors.</li>
  <li>Fees and gains from the collateral support the state’s Bitcoin Economic Development Fund.</li>
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<p>New Hampshire has taken a major step in blending traditional finance with digital assets, becoming the first U.S. state to approve a municipal bond backed by Bitcoin.</p>
<p>According to a <a href="https://www.cryptoinamerica.com/p/new-hampshire-launches-first-bitcoin-6a6" target="_blank" rel="noopener noreferrer nofollow">report</a> from Crypto in America, the state’s Business Finance Authority (BFA) signed off on a $100 million Bitcoin-backed conduit bond this week. The structure lets companies borrow money by using Bitcoin as collateral.&nbsp;</p>
<p>The bond is structured so that the state or taxpayers are not at risk. The state’s BFA acts only as a conduit, overseeing the deal while investors are protected by the Bitcoin held in custody by BitGo.</p>
<p>Governor Kelly Ayotte called the approval a significant milestone that advances the state’s position in digital finance without putting public funds at risk.</p>
<h2 class="wp-block-heading" id="how-the-bitcoin-backed-bond-works">How the Bitcoin-backed bond works</h2>
<p>The bond was created by Wave Digital Assets and Rosemawr Management. Under its terms, borrowers must post roughly 160% of the bond’s value in Bitcoin.&nbsp;</p>
<p>If the value drops below roughly 130%, an automatic liquidation mechanism protects bondholders. This lets companies raise capital without selling their Bitcoin or triggering taxes.</p>
<p>Fees and any gains from the collateral will flow into the Bitcoin Economic Development Fund, which supports innovation and business growth in the state. Law firm Orrick assisted in structuring the deal, emphasizing its potential impact on municipal finance.</p>
<h2 class="wp-block-heading" id="a-new-model-in-u-s-municipal-finance">A new model in U.S. municipal finance</h2>
<p>Crypto-backed lending has been common in private finance, but it has never entered the U.S. municipal bond world. The global bond market is enormous, worth about $140 trillion worldwide and roughly $58 trillion in the United States.</p>
<p>New Hampshire’s experiment breaks that pattern. If the structure works, it could provide a template for other states to explore Bitcoin-backed borrowing in a regulated public setting.</p>
<p>Wave Digital Assets’ Les Borsai views the BFA’s Bitcoin-backed bond as a first attempt to bridge that gap. He says the structure shows how digital assets might be used responsibly in traditional finance and could eventually draw interest from major institutions once bond ratings arrive. That momentum, he added, could lead to new products tied to fixed-income markets, expanding far beyond the ETF boom of recent years.</p>
<h2 class="wp-block-heading" id="other-states-are-joining-the-bitcoin-movement">Other states are joining the Bitcoin movement</h2>
<p>This development follows New Hampshire’s decision in May to pass <a href="https://www.cryptotimes.io/2025/05/07/new-hampshire-approves-bitcoin-reserve-bill/" target="_blank" rel="noopener noreferrer nofollow">the country’s first Bitcoin Reserve Bill</a>, which allows the state treasury to invest up to 5% of public funds in digital assets with a market cap of at least $500 billion. At the moment, only Bitcoin qualifies.</p>
<p>Not just New Hampshire, Texas, and Ohio have also passed moving towards Bitcoin-focused legislation, signaling broader national momentum.</p>
<p>Texas has gone a step further by creating the Texas Strategic Bitcoin Reserve under SB21, becoming the first state <a href="https://www.cryptotimes.io/2025/06/24/texas-approves-10m-to-launch-first-public-bitcoin-reserve/" target="_blank" rel="noopener noreferrer nofollow">to hold Bitcoin using public funds</a>. Such a reserve will be maintained separately from the general treasury for the purpose of increasing financial resilience and hedging against inflation.</p>
<p>Ohio is also entering the race. Senator Sandra O’Brien has<a href="https://www.cryptotimes.io/2025/02/05/ohio-lawmaker-introduces-bill-to-create-bitcoin-reserve-fund/" target="_blank" rel="noopener noreferrer nofollow"> introduced Senate Bill 57</a>, proposing an Ohio Bitcoin Reserve Fund that would let the state treasurer invest in Bitcoin for at least five years under strict security rules.</p>
<p>Together, Texas, Ohio, and New Hampshire show that state-level Bitcoin adoption is accelerating across the U.S.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Also Read: <a href="https://www.cryptotimes.io/2025/11/19/tether-invests-in-ledn-to-drive-bitcoin-backed-lending-growth/" target="_blank" rel="noopener noreferrer nofollow">Tether Invests in Ledn to Drive Bitcoin-Backed Lending Growth</a></p>
</blockquote>

New Hampshire Launches Bitcoin Municipal Bond

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