New Hampshire’s Business Finance Authority (BFA) has approved a $100 million Bitcoin-backed conduit bond. This is the first bond of its kind in the U.S.
The State of New Hampshire has made a critical advance in digital finance. The state’s Business Finance Authority (BFA) approved a first-of-its-kind $100 million bond. This is a special bitcoin-backed conduit bond. As a result, the state is creating a link between the old debt markets and digital assets.
This financial instrument enables companies to get loans. They borrow under the over-collateralized Bitcoin. A private custodian stores this Bitcoin in a secure manner. Specifically, the digital asset manager Wave Digital Assets designed the bond. They worked with a muni bond specialist, Rosemawr Management.
BTC Collateral Mechanism Secures Investor Principal
Crucially, the bond does not rely on financial support from the state or its taxpayers. The BFA is merely an approving and supervising conduit. Therefore, the BFA avoids any repayment risk.
Additionally, the Bitcoin collateral directly protects investors.BitGo holds this collateral in safe custody. A dedicated liquidation system will save investors in case the price of Bitcoin falls too low.
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This action comes on the heels of a previous legislative move by the state. In May, New Hampshire developed the nation’s first strategic Bitcoin reserve. That law allows state treasury to invest up to 5% of public funds in digital assets.
Governor Kelly Ayotte hailed this new financing milestone. She signed the Strategic Bitcoin Reserve bill into law in May. She stressed that New Hampshire is the country’s leader in embracing new technologies.
The Governor called the bond an innovative way to attract investment. In addition, it puts the state in the position of a leader in digital finance. This is all done without risking state funds or taxpayer dollars.
New Bond Structure Funds Economic Development
The money raised by the bond fees will fund a new state fund. Any returns made from the Bitcoin collateral will also go into this fund. This revenue is used to support the Bitcoin Economic Development Fund.
This specialized fund is looking to create more innovation and new business growth throughout the state. The municipal bond law firm Orrick helped ensure compliance of the deal.
Les Borsai, co-founder of Wave, explained the nature of the deal. He said the aim is to bridge fixed income with digital assets totally. He added that the design is institutional, compliant, and globally scalable.
GOP Representative Keith Ammon calls the bond a key test. He thinks it is a sandbox for government finance. This test demonstrates how Bitcoin can be used as high-quality collateral.
Bond Structure that utilizes Bitcoin as collateral under the same rules. These rules apply to the traditional municipal or corporate bonds. Finally, the BFA approval demonstrates that digital assets are being integrated with core financial systems.
The price of one Bitcoin (BTC) reached 92,485.77 on November 19, 2025. This historic action serves as a precedent for other states.
