New Hampshire has made waves by approving the first municipal bond in the U.S. backed by Bitcoin (BTC). This innovative bond allows companies to borrow against Bitcoin stored by a private custodian, providing liquidity without the need to sell crypto assets, which could lead to taxable events.

Key Highlights

• $100 Million Bond Issuance: The state’s Business Finance Authority approved a $100 million bond secured by Bitcoin on November 19, 2025. According to journalist Eleanor Terret, this initiative is a significant step towards integrating digital assets into the global debt market, estimated at $140 trillion.

• Collateral Requirements: Companies will need to pledge approximately 160% of the bond’s value in Bitcoin as collateral. To protect investors, a safety measure has been instituted to activate if Bitcoin’s price drops below 130% of the bond’s value.

• Funding Source: The earnings from this arrangement will contribute to the Bitcoin Economic Development Fund for the area, fostering the local economy.

• State’s Proactive Approach: This approval follows New Hampshire’s recent legislation allowing its Treasury to invest a portion of public funds in digital assets. Governor Kelly Ayotte remarked, “I am proud that New Hampshire is once again first in the nation to embrace new technologies with this historic Bitcoin-backed bond.”

Industry Insights

Les Borsai, co-founder of Wave Digital Assets, emphasized the aim to blend traditional finance with digital assets. Furthermore, legislator Keith Ammon highlighted the potential of this bond as a pioneering test for high-quality collateral in government finance.

This historic decision could inspire other regions to adopt similar frameworks, thereby encouraging institutional interest in digital asset financing.