Bitcoin News Update: New Hampshire Connects Cryptocurrency and Conventional Finance Through Innovative $100M Bond

New Hampshire has set a new milestone as the first U.S. state—and the first government worldwide—to greenlight a $100 million municipal bond backed by Bitcoin, signaling a major advancement in merging cryptocurrency with conventional finance. On November 17, 2025, the state's Business Finance Authority (BFA) approved this groundbreaking model, enabling private firms to secure loans using over-collateralized

while ensuring taxpayers are not liable for repayment. This follows New Hampshire's earlier move to establish a Bitcoin reserve strategy, which of its public funds in digital currencies.

This bond functions as a conduit, with the BFA serving as a facilitator rather than a direct borrower or guarantor. To participate, borrowers must provide Bitcoin worth 160% of the bond’s value, which is securely held by BitGo, a prominent crypto custodian. Should the value of Bitcoin fall below 130% of the loan, an automated liquidation process is triggered to safeguard investors. While the structure is similar to traditional municipal bonds, it incorporates digital assets as collateral, potentially serving as a model for future crypto-backed funding solutions.

, highlighting its ability to draw investment without putting state finances at risk from market swings. "This move puts us at the forefront of digital finance while protecting taxpayer interests," she said. Rather than funding public infrastructure, the bond’s proceeds will be directed to the Bitcoin Economic Development Fund, which uses fees and collateral profits to foster innovation and entrepreneurship.

The initiative was created by Wave Digital Assets and Rosemawr Management, with legal support from Orrick, a leading municipal bond law firm. Les Borsai, Wave’s co-founder, described the bond as a link between traditional fixed-income products and digital assets, aiming to formalize the use of crypto as collateral. The design also helps borrowers avoid taxable events, as companies can raise capital without liquidating their Bitcoin.

New Hampshire’s favorable stance on crypto began in May 2025, when it became the first state to permit its treasury to invest in digital assets. This new bond builds on that foundation, testing Bitcoin’s effectiveness as high-quality collateral in public finance. Republican Representative Keith Ammon, who played a key role in the state’s Bitcoin reserve legislation, described the bond as a “sandbox” for assessing crypto’s potential in government borrowing.

The bond’s approval could motivate other states to consider similar approaches, especially as the global debt market surpasses $140 trillion, with the U.S. representing over $58 trillion. Experts suggest this move could attract institutional investors, such as pension funds, to regulated digital asset opportunities. Nonetheless, obstacles remain, including Bitcoin’s price fluctuations and changing regulatory requirements.

By taking this bold step, New Hampshire has set an example for integrating blockchain technology with established financial systems. As the bond market continues to evolve, the state’s initiative could reshape how governments and institutions utilize digital assets for economic growth and stability.