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New Hampshire Makes History with First U.S. Bitcoin-Backed Municipal Bond
New Hampshire is making headlines as it takes a pioneering step in the crypto world, approving a $100 million municipal bond backed by Bitcoin. According to minutes from a Nov. 17 meeting of the New Hampshire Business Finance Authority (BFA), the state planned “to consider approving a resolution authorizing up to $100,000,000 bonds for a project to acquire and hold digital currency.”
The following day, the BFA directors voted 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.”
Bridging Traditional Finance and Crypto
The bond, reportedly backed entirely by Bitcoin (BTC), is designed to allow companies to borrow against overcollateralized BTC held by a private custodian, with BitGo managing custody. Importantly, neither the state nor taxpayers are on the hook; instead, the bond is a private transaction overseen by the BFA.
Wave Digital Assets and Rosemawr Management structured the bond to function under the same rules as municipal and corporate bonds. Wave co-founder Les Borsai described the initiative as a way to “bridge traditional fixed income with digital assets” for institutional investors. Borrowers are expected to post roughly 160% of the bond’s value in Bitcoin as collateral, with automatic liquidation if BTC drops below ~130%, protecting bondholders.
Fueling Local Innovation
Fees from the transaction will support the Bitcoin Economic Development Fund, financing local innovation and entrepreneurship programs, according to BFA Executive Director James Key-Wallace.
A Crypto-Friendly State
This move builds on New Hampshire’s ongoing embrace of digital assets. Earlier this year, the state became the first in the U.S. to allow government investment in cryptocurrencies. New Hampshire is also considering deregulating local crypto mining operations, further cementing its reputation as a Bitcoin-friendly community.
From exploring tax payments in BTC in 2015 to creating the first state-level Bitcoin-backed municipal bond, New Hampshire is positioning itself at the forefront of the intersection between public finance and crypto innovation.
