Bitcoin News Today: NH's Bitcoin Bond Bridges Traditional and Digital Finance

New Hampshire has become the first U.S. state to issue a $100 million municipal bond backed by Bitcoin, marking a groundbreaking step in the integration of digital assets into public finance. The bond, approved by the state's Business Finance Authority (BFA), leverages over-collateralized Bitcoin held by custodian BitGo to secure the loan, allowing borrowers to access capital without liquidating their crypto holdings. The structure, designed by asset manager Wave Digital Assets and bond specialist Rosemawr Management, aims to bridge traditional fixed income with digital assets while minimizing risk for investors.

The bond requires borrowers to post approximately 160% of the bond's value in Bitcoin as collateral. If the cryptocurrency's price falls below 130% of the bond's value, a liquidation mechanism will activate to protect bondholders. Proceeds from the bond will fund New Hampshire's Bitcoin Economic Development Fund, supporting innovation, entrepreneurship, and infrastructure projects. State officials emphasized that the initiative does not expose taxpayers to risk, as the BFA acts as an overseer rather than a direct guarantor.

New Hampshire's move builds on its earlier adoption of a strategic Bitcoin reserve, enacted in May 2025, which allows the state to allocate a portion of public funds to approved digital assets. Governor Kelly Ayotte, a vocal proponent of the initiative, called the bond "a historic step in positioning New Hampshire as a leader in digital finance". The state's reserve currently limits investments to Bitcoin due to its $500 billion minimum market capitalization threshold.

The bond's approval has drawn attention for its potential to expand the $140 trillion global debt market to include digital assets. Les Borsai, co-founder of Wave Digital Assets, stated the structure demonstrates how public and private sectors can "responsibly unlock the value of digital assets and reserves". Meanwhile, critics highlight risks tied to Bitcoin's volatility, though New Hampshire's over-collateralization model and safeguards like regular audits aim to mitigate these concerns.

The initiative aligns with broader crypto-friendly policies in the state. In 2025, New Hampshire also passed the Blockchain Basic Laws Act, offering protections for blockchain developers and miners. State Representative Keith Ammon, a crypto advocate, noted the bond could "insulate the state from inflation" and serve as a template for future projects.

With the global bond market dominated by traditional assets, New Hampshire's experiment could inspire other states to explore similar models, particularly as institutional interest in crypto grows. Harvard University's recent $443 million investment in BlackRock's Bitcoin ETF underscores rising institutional confidence, though New Hampshire's bond represents a more direct integration of crypto into public finance.