Bitcoin Updates: New Hampshire’s Bitcoin-Backed Bond Sets an Example for Using Digital Assets as Collateral in Public Finance

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Bitget-RWA2025/11/19 06:32

By:Bitget-RWA

- New Hampshire issues first U.S. Bitcoin-backed municipal bond, secured by over-collateralized Bitcoin via BitGo. - The $100M bond requires 160% Bitcoin collateral with 130% liquidation triggers, managed by Wave and Rosemawr. - State's Strategic Bitcoin Reserve allows 5% treasury assets in digital assets, funding innovation through bond proceeds. - Legal experts highlight the structure as a potential template for digital asset collateral in public finance. - The initiative aligns with global Bitcoin adopt

New Hampshire has made history as the first state in the U.S. to launch a municipal bond backed by Bitcoin, approving a $100 million conduit bond that is over-collateralized

with Bitcoin

and safeguarded by BitGo. The Business Finance Authority (BFA) of the state gave the green light to this arrangement, which

enables corporate entities to obtain funding without putting taxpayers

at risk for repayment, signifying a groundbreaking step for digital assets in the $140 trillion global debt sector. The bond, structured by Wave Digital Assets and Rosemawr Management,

mandates that borrowers provide 160% collateral

in Bitcoin, with automatic liquidation set to occur if coverage drops to 130%, ensuring the protection of investors' capital.

Bitcoin Updates: New Hampshire’s Bitcoin-Backed Bond Sets an Example for Using Digital Assets as Collateral in Public Finance image 0

This project builds upon New Hampshire's previous move to establish a Strategic Bitcoin Reserve, which was put into effect in May 2025,

allowing up to 5% of the state's treasury holdings

to be invested in digital assets with a minimum market cap of $500 billion. Governor Kelly Ayotte, who enacted the reserve legislation,

described the bond as a forward-thinking solution

to draw in capital and position New Hampshire at the forefront of digital financial innovation. The funds raised, along with fees and earnings from the Bitcoin collateral, will be directed to the state's Bitcoin Economic Development Fund,

fostering entrepreneurship and technological advancement

The bond's structure has attracted notice for adhering to established municipal finance standards while incorporating cryptocurrency as collateral. The BFA serves as a facilitator, managing the process without taking on the debt itself, and

Orrick, a leading law firm in municipal bonds

, played a key role in crafting the legal framework.

Legal professionals point out

that this bond could become a model for other states interested in using digital assets as security in public financing.

Industry observers see this as a pivotal experiment for Bitcoin’s acceptance as a reliable form of collateral.

Les Borsai, co-founder of Wave Digital Assets

, highlighted the bond’s capacity to connect traditional fixed-income markets with digital assets in a way that is “fully institutional, compliant, and scalable worldwide.”

Market analysts believe

this development could speed up the adoption of Bitcoin-backed lending by institutions, especially as pension and retirement funds look for regulated ways to invest in crypto assets.

New Hampshire’s bond is being introduced as Bitcoin adoption grows globally, with examples such as El Salvador’s ongoing Bitcoin purchases and

Harvard University’s $443 million allocation

to BlackRock’s IBIT ETF. The state’s strategy demonstrates a rising openness among lawmakers to trial digital assets in public finance, even as debates continue regarding volatility and regulatory certainty.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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