Bitcoin News Today: New Hampshire Bridges Crypto and Traditional Finance with Pioneering $100M Bond

New Hampshire has made history by becoming the first U.S. state-and the first government globally-to approve a $100 million Bitcoin-backed municipal bond, marking a significant step in integrating cryptocurrencies into traditional finance. The state's Business Finance Authority (BFA) authorized the innovative structure on November 17, 2025, allowing private companies to borrow against over-collateralized Bitcoin while shielding taxpayers from repayment risks. The move follows New Hampshire's earlier adoption of a strategic Bitcoin reserve, which permits the state to allocate up to 5% of public funds to digital assets.

The bond operates as a conduit, with the BFA acting as an intermediary rather than a direct borrower or guarantor. Borrowers must post 160% of the bond's value in Bitcoin, held in custody by BitGo, a leading crypto custodian. If Bitcoin's value drops below 130% of the loan amount, an automated liquidation mechanism activates to protect investors. This structure mirrors traditional municipal bonds but introduces digital assets as collateral, offering a template for future crypto-backed financing.

Governor Kelly Ayotte hailed the initiative as a breakthrough, emphasizing its potential to attract investment without exposing state funds to market volatility. "This positions us as a leader in digital finance without risking taxpayer dollars," she stated. The bond's proceeds will not fund public projects directly but instead support the Bitcoin Economic Development Fund, which allocates fees and collateral gains to stimulate innovation and entrepreneurship.

The project was developed by Wave Digital Assets and Rosemawr Management, with legal guidance from Orrick, a top municipal bond firm. Co-founder Les Borsai of Wave described the bond as a bridge between traditional fixed income and digital assets, aiming to institutionalize crypto collateralization. The structure also avoids taxable events for borrowers, as companies can access capital without selling their Bitcoin holdings.

New Hampshire's crypto-friendly policies began in May 2025 when it became the first state to allow its treasury to invest in digital assets. The recent bond expands on this framework, testing Bitcoin's viability as high-grade collateral in public finance. Republican Representative Keith Ammon, a key architect of the state's Bitcoin reserve legislation, called the bond a "sandbox" for evaluating crypto's role in government borrowing.

The bond's approval could inspire other states to explore similar models, particularly as the global debt market exceeds $140 trillion, with the U.S. accounting for over $58 trillion. Analysts note that this development may encourage institutional investors, including pension funds, to seek regulated exposure to digital assets. However, challenges remain, including Bitcoin's price volatility and evolving regulatory landscapes.

With its pioneering approach, New Hampshire has set a precedent for blending blockchain technology with traditional financial systems. As the bond market evolves, the state's experiment could redefine how governments and institutions leverage digital assets for growth and stability.