New Hampshire approves first US Bitcoin-backed muni bond

The collateral is over-collateralized Bitcoin held with custodian BitGo. The BFA acts as a conduit and overseer, does not guarantee repayment, and the bond has no claim on state funds or taxpayers.

Wave Digital Assets designed the structure with municipal bond firm Rosemawr Management to fit within existing bond rules. Borrowers are expected to post roughly 160% of the bond’s value in Bitcoin as collateral. If the collateralization ratio falls to about 130%, a liquidation process can be triggered to protect investors. The approach lets companies raise capital without selling Bitcoin, which can create taxable events.

Legal work is led by Orrick, which advised New Hampshire on the structure of the security. “We are excited to support New Hampshire in launching the first municipal security backed by cryptocurrency,” said Orion Mountainspring, partner at Orrick. Fees from the transaction, along with any gains in the Bitcoin collateral, will flow into the local Bitcoin Economic Development Fund, according to BFA Executive Director James Key-Wallace. The fund is intended to support innovation, entrepreneurship, and business development in the state.

Governor Kelly Ayotte welcomed the approval, stating: “New Hampshire is once again first in the nation to embrace new technologies with this Bitcoin-backed bond. This brings investment opportunities to our state without risking state funds or taxpayer dollars.”

“Our goal is to bridge traditional fixed income with digital assets in a way that is institutional, compliant, and scalable,” noted Les Borsai, co-founder of Wave Digital Assets.

GOP Rep. Keith Ammon described the bond as a pilot for using Bitcoin as high-grade collateral in public finance. “The BFA can partner on this structure, prove out the concept, and it could lead to a future state treasury-issued Bitcoin bond,” he noted.

Borsai expects institutional interest could grow once credit ratings are assigned. Crypto-backed borrowing has existed in private markets, but it has not been used in the U.S. municipal bond market. The global bond market is estimated at about $140 trillion, with the U.S. accounting for roughly $58.2 trillion.

As GNCrypto wrote previously, on Sept. 23, 2025 Denmark became the first sovereign to launch a green bond under the EU Green Bond Standard (EUGBS), the bloc’s voluntary, taxonomy‑aligned label. Investor bids topped 14 billion kroner for a 5–10 billion kroner 10‑year “twin” to the 2.25% Nov 2035 conventional bond, indicated about 1.5 bps inside, with BNP Paribas, Danske Bank, Nordea and SEB as joint bookrunners. Deputy governor Signe Krogstrup said the framework builds transparency and trust, and the EUGBS aims to curb greenwashing via standardized reporting and use‑of‑proceeds rules.