Bitcoin News Today: NH's Bitcoin Bond: Pioneering Collateral in $140T Debt Market

New Hampshire has become the first U.S. state to approve a municipal bond backed by Bitcoin, marking a significant milestone in the integration of digital assets into traditional capital markets. The New Hampshire Business Finance Authority (BFA) approved a $100 million bond issuance on November 18, 2025, with Bitcoin serving as collateral. The initiative, conceptualized by Wave Digital Assets and Rosemawr Management, aims to bridge the gap between digital assets and institutional debt markets while ensuring no taxpayer funds are at risk. Governor Kelly Ayotte hailed the move as a "historic" step, emphasizing its potential to position New Hampshire as a leader in digital finance.

The bond structure allows private companies to borrow against over-collateralized Bitcoin, with borrowers required to post approximately 160% of the bond's value in Bitcoin. If the collateral's value drops below 130%, an automated liquidation mechanism activates to protect bondholders. BitGo Trust Company, a digital asset custodian, will secure the Bitcoin in regulated cold storage, leveraging multi-layer security protocols. The BFA acts as a conduit, overseeing the transaction without assuming repayment risk, while fees from the bond will fund the Bitcoin Economic Development Fund-a program designed to support economic growth and innovation in the state according to state officials.

Legal and financial advisors played a critical role in structuring the deal. Orrick, a top municipal bond law firm, guided the BFA through the legal framework, calling the transaction a "game-changer" for digital currency and public finance. The bond's approval builds on New Hampshire's earlier legislation permitting state treasuries to allocate up to 5% of public funds to digital assets, a move that established the state's first strategic Bitcoin reserve.

Industry leaders and lawmakers have framed the bond as a "sandbox" for testing Bitcoin's viability as collateral in government finance. GOP Rep. Keith Ammon, who authored the state's Bitcoin reserve law, noted that the structure avoids taxable events for borrowers, making it attractive for entities holding long-term Bitcoin reserves. The initiative could also serve as a blueprint for other states seeking to modernize funding tools or diversify reserves.

The global municipal bond market, valued at $58.2 trillion in the U.S. alone, has traditionally relied on conservative collateral. New Hampshire's experiment introduces Bitcoin as a novel asset class, potentially unlocking new investment opportunities for institutional players according to market analysts. Wave Digital Assets co-founder Les Borsai emphasized that the bond demonstrates how public-private collaboration can responsibly harness digital assets to stimulate economic growth according to the BFA's report.

With the bond awaiting final approval from the governor and executive council, New Hampshire's move underscores its commitment to pioneering financial innovation. As the first state to authorize a Bitcoin-backed municipal bond, the Granite State has set a precedent that could reshape the $140 trillion global debt market.