New Hampshire Greenlights $100M Municipal Bond Backed by Bitcoin

New Hampshire has approved a $100 million Bitcoin-backed municipal bond, in what appears to be the first structure of its kind at the US state level, signaling a bold new experiment in merging traditional finance with digital assets.

According to minutes from the New Hampshire Business Finance Authority (BFA) meetings on Nov. 17 and 18, the agency authorized a taxable conduit revenue bond of up to $100 million for WaveRose Depositor, LLC. The bond will be backed by Bitcoin rather than taxpayers, with the BFA acting as overseer of the private financing structure.

A report from Crypto in America said the bond allows companies to borrow against overcollateralized Bitcoin held with a private custodian, reportedly BitGo. Instead of state guarantees, BTC posted as collateral protects investors, following the same regulatory rules that govern municipal and corporate bonds.

The structure was designed by asset manager Wave Digital Assets and bond specialist Rosemawr Management. Wave co-founder Les Borsai said the aim is to “bridge traditional fixed income with digital assets,” giving institutional investors a new way to gain Bitcoin exposure through a familiar bond format.

The borrower is expected to post around 160% of the bond’s value in Bitcoin. If the collateral value falls below about 130%, liquidation mechanisms would kick in to ensure bondholders are repaid in full. Fees from the transaction will support the state’s Bitcoin Economic Development Fund, which backs local innovation and entrepreneurship, according to BFA Executive Director James Key-Wallace.

The move follows a series of pro-crypto steps by New Hampshire. In May, it became the first US state to allow government investments in cryptocurrencies and precious metals, and lawmakers are currently reviewing a bill to ease regulations on local crypto mining. The state has been seen as crypto-friendly since at least 2015, when it first explored accepting taxes and fees in Bitcoin.