New Hampshire Makes History With $100M Bitcoin-Backed Bond
2 Investments New Hampshire has launched the first $100 million Bitcoin-backed municipal bond in the US, using over-collateralized Bitcoin to protect investors and support economic development, setting a precedent for crypto integration in public finance.
New Hampshire has approved and issued the first $100 million Bitcoin-backed municipal bond in the United States, marking a milestone in integrating digital assets with traditional finance. The bond, authorized by the state’s Business Finance Authority, is collateralized by Bitcoin held by a private custodian, with a requirement that borrowers deposit about 160% of the bond’s value in Bitcoin. If the collateral falls below 130%, an automatic liquidation mechanism protects investors. The initiative follows the state’s earlier move to allow up to 5% of its treasury to be invested in digital assets, establishing the nation’s first Strategic Bitcoin Reserve. Fees and potential gains from the collateral will support the state’s Bitcoin Economic Development Fund, aimed at fostering innovation and entrepreneurship. The bond structure is designed to attract institutional investors seeking compliant exposure to Bitcoin, while safeguarding public funds and offering a new model for municipal finance. This development could pave the way for broader adoption of crypto-backed debt products and influence future regulatory frameworks.
