Bitcoin News Today: New Hampshire's Bitcoin Bond: A Template for Digital Asset Collateral in Public Finance

New Hampshire has become the first U.S. state to issue a Bitcoin-backed municipal bond, authorizing a $100 million conduit bond secured by over-collateralized Bitcoin held in custody by BitGo. The state's Business Finance Authority (BFA) approved the structure, which allows corporate borrowers to access capital without exposing taxpayers to repayment risk, marking a historic entry of digital assets into the $140 trillion global debt market. The bond, designed by Wave Digital Assets and Rosemawr Management, requires borrowers to post 160% collateral in Bitcoin, with forced liquidation triggers set at 130% coverage to protect investor principal.

The initiative builds on New Hampshire's earlier adoption of a Strategic Bitcoin Reserve, enacted in May 2025, which permits up to 5% of state treasury assets to be allocated to digital assets with a market capitalization of at least $500 billion. Governor Kelly Ayotte, who signed the reserve bill into law, hailed the bond as an innovative tool to attract investment and position the state as a leader in digital finance. Proceeds from the bond, including fees and returns from Bitcoin collateral, will fund the state's Bitcoin Economic Development Fund, supporting innovation and entrepreneurship.

The structure has drawn attention for its compliance with traditional municipal finance rules while integrating crypto collateral. The BFA acts as a conduit, overseeing the transaction without assuming debt liability, and Orrick, a major municipal bond law firm, assisted in designing the regulatory framework. Legal experts note that the bond could serve as a template for other states to explore digital asset collateral in public finance.

Market participants view the move as a significant test of Bitcoin's viability as high-grade collateral. Les Borsai, co-founder of Wave Digital Assets, emphasized the bond's potential to bridge traditional fixed income with digital assets in a "fully institutional, compliant, and globally scalable" manner. Analysts suggest the initiative could accelerate institutional adoption of Bitcoin-backed lending, particularly as pension funds and retirement plans seek regulated exposure to crypto assets.

New Hampshire's bond comes amid broader Bitcoin adoption trends, including El Salvador's continued accumulation of Bitcoin and Harvard University's $443 million investment in BlackRock's IBIT ETF. The state's approach reflects a growing willingness among policymakers to experiment with digital assets in public finance, despite ongoing debates about volatility and regulatory clarity.