New Hampshire has approved the first $100 million Bitcoin bond, marking a major step for digital assets in U.S. public finance. The state’s Business Finance Authority (BFA) authorized the structure on Monday, creating a pathway for companies to borrow against over-collateralized Bitcoin held by a private custodian. This is the first time a U.S. municipal entity has approved a deal of this kind.
Although BFA is a state agency, the Bitcoin bond is not backed by taxpayers. The Authority acts only as a conduit. It oversees the deal but takes no repayment risk. Investor protection comes from Bitcoin locked in custody at BitGo. This model allows digital assets to sit inside a regulated bond structure without exposing the state’s balance sheet.
The approval builds on earlier steps by the state. New Hampshire recently became the first in the country to authorize its treasury to invest up to 5% of public funds in digital assets, establishing a strategic reserve. Governor Kelly Ayotte called the Bitcoin bond another milestone and said the structure brings new investment opportunities without risking public funds.
LATEST: 🇺🇸 New Hampshire’s Business Finance Authority has approved a $100M municipal bond backed by Bitcoin collateral at 160%, creating the first structure of its kind at the US state level. pic.twitter.com/FHyFJZk8pI
— CoinMarketCap (@CoinMarketCap) November 19, 2025
How the Structure Works
The bond was designed by Wave Digital Assets with support from municipal bond specialist Rosemawr Management. The goal is to use Bitcoin as collateral inside a fully compliant framework governed by existing municipal bond rules. Borrowers will post roughly 160% collateral in Bitcoin. If collateral levels fall near 130%, an automatic liquidation mechanism protects bondholders.
💰NH IS FIRST IN THE NATION💰
New Hampshire is OFFICIALLY the first state to lay the groundwork for a strategic bitcoin reserve.
The Live Free or Die state is leading the way in forging the future of commerce and digital assets. pic.twitter.com/7CauuKcKkP
— NH House Republicans (@NHHouseGOP) May 6, 2025
The initiative also acts as a testing ground. Lawmakers see it as a safe environment to evaluate how Bitcoin performs as high-grade collateral in government finance. Fees and any gains generated from the collateral will move into the state’s Bitcoin Economic Development Fund.
A New Market for Digital Assets
If the model succeeds, it could open the door for broader adoption across the $140 trillion global debt market. Asset managers believe this structure may bridge traditional fixed income with digital reserves, giving institutions a regulated way to access crypto-backed products. Industry leaders say this could be the first step in reshaping how digital assets support public and private financing in the years ahead.