New Hampshire launches first Bitcoin-backed municipal bond
Exclusive: New Hampshire has become the first state to approve a municipal bond backed by Bitcoin—a notable step that could help bring digital assets into the $140 trillion global debt market.
On Monday, the state’s Business Finance Authority (BFA) signed off on a $100 million Bitcoin-backed conduit bond. The structure allows companies to borrow against over-collateralized Bitcoin held by a private custodian.
Although the BFA is a state entity, the bond is not guaranteed by the state or its taxpayers. The BFA acts purely as a conduit—approving and overseeing the deal without taking on repayment risk—while investors are protected by Bitcoin collateral held in custody by BitGo.
This move follows New Hampshire’s earlier decision to let its treasury invest up to 5% of public funds in digital assets, establishing the nation’s first strategic Bitcoin reserve.
Governor Kelly Ayotte, who signed the Strategic Bitcoin Reserve bill in May, praised the development. “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
Crypto asset manager Wave Digital Assets, in partnership with municipal bond specialist Rosemawr Management, designed the bond to connect digital assets with traditional fixed income. The bond uses Bitcoin as collateral and operates under the same regulatory framework that governs municipal and corporate bonds.
“Our goal is to bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant, and globally scalable,” said Les Borsai, co-founder of Wave.
State Rep. Keith Ammon, who introduced the Strategic Bitcoin Reserve bill, described the bond as a sandbox for testing Bitcoin as high-grade collateral in public 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, borrowers will post about 160% of the bond’s value in Bitcoin as collateral. If the collateral level falls to roughly 130% due to price declines, an automated liquidation process steps in to protect bondholders. Ammon said this setup lets borrowers access capital without selling their Bitcoin or triggering a taxable event.
According to BFA Executive Director James Key-Wallace, transaction fees—and any gains from the Bitcoin collateral—will flow into the Bitcoin Economic Development Fund, which supports innovation, entrepreneurship, and business growth across the state.
Top municipal bond law firm Orrick helped structure the deal. “We are excited to support New Hampshire in launching the first municipal security backed by cryptocurrency,” said Orion Mountainspring, a partner at the firm. “This is a game-changer for digital currency and municipal finance.”
Opening the $140T global debt market to Bitcoin
While crypto-backed lending has existed in private markets for years, it hasn’t touched U.S. municipal finance—a space known for conservative risk management and long-standing underwriting standards. If New Hampshire’s model proves out, it could serve as a template for other states.
“This isn’t just one transaction—it’s the opening of a new debt market,” Borsai said. “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 estimated at about $140 trillion, with the U.S. portion at roughly $58.2 trillion, making it the largest fixed-income market in the world.
Today, many crypto reserves sit idle rather than being used as productive financial assets. Borsai envisions issuers putting those reserves to work—earning yield, backing loans, and supporting economic projects—within a regulated framework. Achieving that, he says, will require institutional participation, allowing pensions and retirement plans to gain measured exposure to digital assets without increasing overall risk.
The BFA’s Bitcoin-backed bond offers one model for safely integrating crypto with traditional finance and supporting economic growth. Interest from institutions could accelerate as credit ratings are assigned, opening the door to more products tied to fixed income and derivatives—not just ETFs, which have surged on Wall Street over the past two years.
