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New Hampshire has approved a $100 million Bitcoin-backed municipal bond, becoming the first U.S. state to authorize a borrowing structure collateralized by digital assets.
The decision — recorded in minutes from the New Hampshire Business Finance Authority’s (BFA) Nov. 17 and 18 board meetings — lays the groundwork for a conduit financing model in which companies raise capital against overcollateralized Bitcoin rather than taxpayer or state guarantees.
The board voted unanimously to “approve the preliminary official intent, with no reservation, to issue a taxable conduit revenue bond for WaveRose Depositor, LLC of up to $100,000,000.”
The Bitcoin-backed municipal bond arrangement allows companies to borrow under existing rules for municipal and corporate bonds, with BTC posted at roughly 160% collateralization.
This approval marks a milestone for policy makers evaluating digital-asset integration. It also raises broader questions about the future of public financing in a landscape where a Bitcoin-backed municipal bond may become a viable alternative to traditional credit instruments.
According to Crypto in America, the new Bitcoin-backed municipal bond is structured so that Bitcoin — reportedly held by custodial provider BitGo — covers bondholders in the event of market volatility. The state does not guarantee the debt; instead, BFA oversees the private arrangement while maintaining its conduit financing role.
The bond was co-designed by Wave Digital Assets and Rosemawr Management, both of which specialize in bridging traditional fixed-income frameworks with digital assets.
Wave co-founder Les Borsai said the intention behind the Bitcoin-backed municipal bond is to “bridge traditional fixed income with digital assets” in a way that institutional investors can understand and evaluate.
“We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” he added.
To safeguard investors, collateral must remain above 130%, at which point liquidation can be triggered to ensure obligations are met. According to BFA Executive Director James Key-Wallace, fees generated from the Bitcoin-backed municipal bond will support the state’s Bitcoin Economic Development Fund, a program created to strengthen New Hampshire’s innovation ecosystem.
New Hampshire has emerged as one of the most active U.S. states in exploring cryptocurrency policy. Earlier this year, it became the first to authorize government investment in digital assets after Governor Kelly Ayotte signed legislation permitting municipalities to “invest in cryptocurrency and precious metals.”
The latest Bitcoin-backed municipal bond aligns with the state’s recent initiatives, including efforts to ease restrictions on local Bitcoin mining operations. In October, a committee voted 4–2 to advance a bill for further study after prior deadlocks in the Senate.
Regulatory specialists view New Hampshire as increasingly attractive to crypto businesses. In February, Brendan Cochrane, an Anti-Money Laundering specialist at YK Law, said the state “could become an alternative for crypto companies relocating to the Bahamas,” citing its regulatory openness and legal clarity.
New Hampshire’s approval of a Bitcoin-backed municipal bond builds on nearly a decade of engagement with the digital-asset sector. As early as 2015, lawmakers explored a bill allowing residents to pay taxes and fees in Bitcoin.
Although the proposal was rejected in 2016, it marked the beginning of sustained interest in creating a supportive environment for cryptocurrency adoption.
For policy makers observing the space, New Hampshire’s decision to authorize a Bitcoin-backed municipal bond represents a notable development in the intersection of public finance and digital assets. The model offers a potential pathway for states to facilitate innovative financing without exposing taxpayers to direct risk.
This pilot structure — governed by existing municipal bond regulations — may become a template for jurisdictions considering how digital assets could serve as nontraditional collateral.
It raises key questions for legislators: how should states manage volatility risks, what level of oversight is appropriate, and could such instruments reshape access to capital for public-interest projects?
By launching the nation’s first Bitcoin-backed municipal bond, New Hampshire has effectively positioned itself at the forefront of state-led digital-asset policy experimentation.
Whether other states follow will depend on market performance, regulatory developments, and institutional appetite for Bitcoin-secured debt products.
But the move underscores a broader shift — one in which digital assets are increasingly being tested within the traditional structures of American public finance.
