New Hampshire Creates Crypto History: Launches First BTC-Backed Municipal Bond

[Ben Graham]

New Hampshire (NH) has made crypto history by becoming the first US state to approve a Bitcoin (BTC) backed municipal bond.

On 17 November 2025, the state’s Business Finance Authority (BFA) decided to give the go-ahead for a $100 million bond backed by BTC instead of going the traditional route of using government credit or public project revenue.

Here is the twist, however. Companies that want to borrow through this bond will have to fork up BTC worth 160% of the bond’s value. At the same time, if the price of BTC drops and the collateral drops to 130%, there is a built-in safety mechanism that kicks in to protect investors.

BitGo, a crypto custody firm, will hold the BTC, while the BFA will oversee the end-to-end process. However, BFA will not be liable for any repayment.

State Representative Keith Ammon has been pushing for more BTC-friendly policies in light of the US government backing cryptocurrencies. He explained that this process lets businesses unlock cash without selling their crypto or getting taxed.

BREAKING: THE STATE OF NEW HAMPSHIRE JUST OFFICIALLY LAUNCHED THE 1st #BITCOIN BOND IN HISTORY

A $140 TRILLION MARKET OPENING TO BTC. HUGE pic.twitter.com/sEj00vVKFk

— The Bitcoin Historian (@pete_rizzo_) November 19, 2025

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$140 Trillion Bond Market Meets BTC: NH Leads The Charge

The BTC-backed bond plays a second key role: to boost the state’s economic growth through a dedicated crypto fund. As such, any amount that investors earn from the BTC-backed bond, both from transaction fees and gains made by using BTC as collateral, will go into a special fund: the Bitcoin Economic Development Fund.

The purpose of this fund is to help businesses grow, support startups, and encourage innovation across various verticals in the state.

Wave Digital Assets, a crypto investment firm, and Rosemawr Management, an alternative investment management firm that specializes in municipal bonds, put the bond together.

According to Wave’s Co-Founder, Les Borsai, the goal behind this initiative is to “bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant, and globally scalable.”

Currently, the global bond market is valued at around $140 trillion, and the US makes up more than $58 trillion of that total. Supporters of the BTC-backed bond believe that this is a major step towards integrating crypto within the wider financial fabric of the country.

“This is not just one transaction; it is the opening of a new debt market. We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” Borsai concluded.

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NH A Leader In Digital Finance: Has Its Own Strategic BTC Reserve

Earlier in 2025, NH became the first US state to create a strategic BTC reserve. Governor Kelly Ayotte signed the law in May, allowing the state treasury to invest a portion of public funds into approved digital assets.

The rules are strict. Only assets with a market cap above $500 billion qualify, which currently limits the option to BTC only.

JUST IN: New Hampshire has approved a Bitcoin Strategic Reserve allowing the state to invest up to 5% of total funds.

Incredible pic.twitter.com/cyCULS3JO6

— The ₿itcoin Therapist (@TheBTCTherapist) May 6, 2025

Ayotte, praising the move, said that this makes NH a leader in digital finance while safekeeping taxpayer money. She also highlighted the recent BTC-backed bond as an example of embracing innovation without taking on too much financial risk.

Around the same time, lawmakers introduced the Blockchain Basic Laws Act, which passed the House just days after the BTC reserve bill was approved. The bill aims to protect those who build using blockchain, such as miners, developers, etc.

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Key Takeaways

• New Hampshire launches first BTC-backed bond, blending crypto with traditional public finance
• Bond fees and gains to fund state innovation through the Bitcoin Economic Development Fund
• BitGo will securely hold Bitcoin collateral for New Hampshire’s bond structure

The post New Hampshire Creates Crypto History: Launches First BTC-Backed Municipal Bond appeared first on 99Bitcoins.