New Hampshire Approves First US Bitcoin-Backed Bond

New Hampshire's Business Finance Authority has approved the issuance of a $100 million municipal bond backed by Bitcoin, marking the first such security in the United States. The conduit bond, authorized this week, allows private borrowers to raise capital using overcollateralized Bitcoin holdings rather than traditional tax revenues or project cash flows, positioning the state as a pioneer in integrating digital assets into public finance.

The bond follows a standard conduit structure, where the authority facilitates the issuance but assumes no repayment risk, leaving credit responsibility with the private entity involved. Borrowers must provide approximately 160 percent of the bond's value in Bitcoin as collateral, secured by digital asset custodian BitGo. To safeguard investors, the structure includes automatic liquidation triggers if the collateral ratio falls toward 130 percent due to price fluctuations, ensuring principal protection without state intervention.

This innovative framework was developed by Wave Digital Assets and municipal finance specialist Rosemawr Management, with legal support from Orrick, Herrington & Sutcliffe. Les Borsai, co-founder of Wave Digital...