New Hampshire Issues $100M Bitcoin-Backed Municipal Bond
New Hampshire’s Business Finance Authority has approved the state’s first $100 million bitcoin-backed municipal bond, marking a new bridge between public finance and digital assets. The taxable conduit revenue bond for WaveRose Depositor LLC is overcollateralized with 160% of its face value held in BTC custody by BitGo, with an automatic liquidation threshold set at 130% to protect investors. Supervised by the state but without a government repayment guarantee, the bond insulates taxpayers from market risk. Fees and any collateral gains will flow into the newly established Bitcoin Economic Development Fund to support local entrepreneurs.
Developed by Wave Digital Assets in partnership with Rosemawr Management and legal support from Orrick, the offering targets institutional investors and follows recent New Hampshire legislation allowing cryptocurrency reserves at the state level and moves to deregulate crypto mining. As the first-of-its-kind conduit bond, the bitcoin-backed municipal bond could pave the way for similar crypto-backed financing models in other jurisdictions, strengthening Bitcoin’s role in mainstream capital markets.
Bullish
The approval of a $100M bitcoin-backed municipal bond signals growing institutional acceptance of Bitcoin as high-grade collateral. In the short term, this move may boost trading activity by underpinning confidence in Bitcoin’s liquidity and risk management through overcollateralization and built-in liquidation mechanisms. It demonstrates how digital assets can integrate into traditional fixed-income products, likely attracting yield-seeking institutions. Over the long term, successful execution could pave the way for broader adoption of crypto-backed financing, expanding demand for BTC and stabilizing market perceptions. The state-level framework provides a template that other states or municipalities might follow, potentially increasing institutional inflows and driving bullish momentum for Bitcoin.