The New Hampshire Business Finance Authority has approved a landmark $100 million municipal bond, marking the first instance of a Bitcoin-collateralized municipal bond in the United States. This initiative, approved on November 19, 2025, signals a major integration of digital assets with traditional finance.
Key Features of the Groundbreaking Bond:
- Collateral: The bond is collateralized by Bitcoin (BTC), which will be held and managed by digital asset custodian BitGo.
- Fund Design: The structure was designed through a collaboration involving Wave Digital Assets and Rosemawr Management.
- Investor Protection: The bond is over-collateralized and includes a crucial safety mechanism: the Bitcoin collateral will be automatically liquidated if its value drops below 130% of the bond’s principal, effectively protecting investors.
- Purpose: The funds generated will be directed toward the “Bitcoin Economic Development Fund” to fuel local innovation and economic growth.
A New Model for Public Finance
New Hampshire Governor Kelly Ayotte praised the initiative as a pioneering financial strategy. Experts believe this structure could serve as a template for future crypto-backed government financing, allowing states to benefit from Bitcoin’s potential without risking taxpayer funds.
Les Borsai, Co-founder of Wave Digital Assets, highlighted the significance of the move: “This isn’t just one transaction, it’s the opening of a new debt market… We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves.”
This innovative bond is expected to attract institutional investors to cryptocurrency-backed securities, setting a precedent for municipal finance structures globally.
