New Hampshire Leads the Way with the First Bitcoin-Based Bond in the US, Here’s How It Works!

Updated

November 20, 2025

Gambar New Hampshire Leads the Way with the First Bitcoin-Based Bond in the US, Here’s How It Works!

Jakarta, Pintu News – New Hampshire is back in the spotlight with the launch of municipal bonds backed by Bitcoin . The New Hampshire Business Finance Authority has approved a $100 million conduit bond backed by Bitcoin, an innovative step in the integration of digital assets with traditional capital markets. The initiative not only opens up new opportunities for investors but also sets a precedent for the use of cryptocurrencies in public financing.

Bitcoin-Based Bonds: How Do They Work?

This bond issued by New Hampshire has a unique structure where Bitcoin (BTC) is used as collateral. Borrowers are required to place Bitcoin worth 160% of the bond value as collateral. If the value of Bitcoin falls below 130% of the bond value, a liquidation mechanism will be activated to protect bondholders.

These bonds are expected to help companies to access capital without having to sell their Bitcoin assets, which may also avoid tax hike events. BitGo, as a trusted third party, will act as the Bitcoin collateral depository, with the New Hampshire Business Finance Authority overseeing the entire process without taking on the risk of repayment.

Economic and Innovation Benefits

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The proceeds from this bond transaction, along with appreciation from the collateral, will be allocated into the newly established Bitcoin Economic Development Fund. This fund aims to support innovation, entrepreneurship, and business growth across the state of New Hampshire.

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This initiative not only paves the way for further integration between digital assets and traditional capital markets but also demonstrates how cooperation between the public and private sectors can unlock the value of digital assets responsibly. This will hopefully serve as a model for other states in the US to follow New Hampshire’s lead.

Future Vision and Digital Leadership

With this move, New Hampshire confirms its position as a leader in the adoption of digital financial technology. Previously, the state has also been the first in the US to launch a strategic Bitcoin reserve, signaling their commitment to innovation in public asset management.

Governor Kelly Ayotte has stated that this initiative is an innovative way to increase investment opportunities and position New Hampshire as a leader in digital finance. It also shows great potential for synergies between cryptoassets and the broader capital markets.

Conclusion

New Hampshire’s launch of Bitcoin-backed municipal bonds marks a new chapter in the history of public finance. By combining the security of digital assets with the reliability of traditional financial instruments, New Hampshire not only strengthens its digital finance ecosystem but also sets a new standard for financial innovation at the state level.

FAQ

What is a municipal bond backed by Bitcoin?

Bitcoin-backed municipal bonds are financial instruments in which Bitcoin (BTC) is used as collateral to secure the value of the bond. Borrowers must place Bitcoin worth 160% of the bond value as collateral.

What is the protection mechanism for bondholders if the value of Bitcoin drops?

If the value of Bitcoin falls below 130% of the bond value, the liquidation mechanism will be activated to ensure that bondholders remain protected and get full payment.

What is the purpose of the Bitcoin Economic Development Fund established by New Hampshire?

The Bitcoin Economic Development Fund aims to support innovation, entrepreneurship, and business growth across the state of New Hampshire, using revenue and appreciation from bond collateral.

How do these bonds affect traditional capital markets?

These bonds pave the way for further integration between digital assets and traditional capital markets, demonstrating the potential synergies between these two sectors and possibly serving as a model for other states.

Who is responsible for storing the Bitcoin used as collateral?

BitGo, as a trusted third party, is responsible for the storage of the Bitcoin used as collateral for these bonds.

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