"New Hampshire has become the first state in the U.S. - and the first government globally - to approve a municipal bond backed by Bitcoin, a structural breakthrough that could open the door for digital assets to enter the $140 trillion global debt market. On Monday, the state's Business Finance Authority (BFA) approved a $100 million Bitcoin-backed conduit bond, allowing private companies to borrow against over-collateralized Bitcoin held in custody, according to exclusive reporting from Eleanor Terrett at Crypto in America."
"The structure was designed by Wave Digital Assets in partnership with muni bond specialist Rosemawr Management. Their framework applies traditional municipal-bond rules to Bitcoin collateral, aiming to make crypto-backed borrowing as standardized as corporate or government debt, per Crypto in America. Under the approved model, borrowers must post roughly 160% of the bond's value in Bitcoin. If the value of that collateral drops below about 130%, an automated liquidation mechanism ensures bondholders remain fully protected."
New Hampshire approved a $100 million Bitcoin-backed conduit municipal bond that allows private companies to borrow against over-collateralized Bitcoin held in custody. The bond is not backed by the state or taxpayers; the Business Finance Authority serves as facilitator and overseer while repayment risk rests on Bitcoin collateral held by BitGo. The state earlier authorized its treasury to allocate up to 5% of public funds into digital assets, creating a strategic Bitcoin reserve. Wave Digital Assets and Rosemawr Management designed a framework applying municipal-bond rules to Bitcoin collateral. Borrowers must post roughly 160% collateral and an automated liquidation triggers if collateral falls below about 130%.
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