New Hampshire has become the first state in the U.S. — and the first government globally — to approve a municipal bond backed by Bitcoin, a structural breakthrough that could open the door for digital assets to enter the $140 trillion global debt market.
On Monday, the state’s Business Finance Authority (BFA) approved a $100 million Bitcoin-backed conduit bond, allowing private companies to borrow against over-collateralized Bitcoin held in custody, according to exclusive reporting from Eleanor Terrett at Crypto in America.
The bond is not backed by the state or taxpayers; instead, the BFA acts strictly as a facilitator, approving and overseeing the deal while repayment risk rests entirely on the Bitcoin collateral held by BitGo.
The approval follows a string of pro-Bitcoin moves by the Granite State, which earlier this year became the first in the nation to authorize its treasury to allocate up to 5% of public funds into digital assets — effectively creating America’s first strategic Bitcoin reserve.
Governor Kelly Ayotte, who signed the reserve bill into law in May, celebrated the latest milestone. “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 positions us as a leader in digital finance without risking state funds or taxpayer dollars.”
A new model for Bitcoin in public finance
The structure was designed by Wave Digital Assets in partnership with muni bond specialist Rosemawr Management. Their framework applies traditional municipal-bond rules to Bitcoin collateral, aiming to make crypto-backed borrowing as standardized as corporate or government debt, per Crypto in America.
Under the approved model, borrowers must post roughly 160% of the bond’s value in Bitcoin. If the value of that collateral drops below about 130%, an automated liquidation mechanism ensures bondholders remain fully protected.
GOP Rep. Keith Ammon, who authored the state’s Bitcoin reserve legislation, called the bond a “sandbox” for demonstrating Bitcoin’s viability as high-grade collateral in public finance.
Because borrowers can unlock capital without selling their Bitcoin, the structure also avoids triggering taxable events — a key feature Ammon says will appeal to companies with long-term BTC holdings.
Orrick, one of the nation’s top municipal finance law firms, helped architect the deal.
New Hampshire’s revenue for a Bitcoin-focused fund
According to BFA Executive Director James Key-Wallace, fees from the bond transaction — along with any appreciation in the Bitcoin collateral — will flow into the state’s Bitcoin Economic Development Fund. The program is designed to support entrepreneurship, business growth, and technological innovation across New Hampshire.
Crypto-backed loans have existed for years in private markets, but New Hampshire’s move marks the first time a U.S. municipal agency has adopted a crypto-collateralized debt structure. If successful, it could serve as a template for other states exploring ways to diversify reserves or modernize funding tools.
Back in May, New Hampshire became the first U.S. state to pass a “Strategic Bitcoin Reserve” bill when Governor Kelly Ayotte signed HB 302 into law. The legislation started to establish a framework for the state to accumulate Bitcoin and other digital assets in its treasury, following a model developed by Satoshi Action.
The law took effect 60 days after passage and authorized the New Hampshire Treasurer to purchase digital assets with a market cap above $500 billion—currently only Bitcoin—while capping holdings at 5% of the state’s total funds. This ensured that Bitcoin complemented the broader investment strategy rather than just dominating it.
HB 302 required that all digital assets held in the reserve be kept in U.S.-regulated custody, whether through state-controlled multisig wallets, qualified custodians, or exchange-traded products, promoting security, fiscal responsibility, and transparency.
