New Hampshire’s Business Finance Authority has approved a $100 million municipal bond backed by Bitcoin, marking what appears to be the first such arrangement sanctioned by a U.S. state authority.
Meeting minutes from November 17 and 18 show that the state’s Business Finance Authority (BFA), which facilitates public and private investment projects, gave preliminary approval for issuing a taxable conduit revenue bond for WaveRose Depositor, LLC. The bond will be collateralized with Bitcoin and structured to allow institutional borrowers to raise capital against cryptocurrency held with a private custodian.
The bond is not funded or insured by the state or taxpayers. Instead, BFA’s role is to authorize and supervise the private bond issuance, while Bitcoin holdings are managed independently by a qualified custodian, reported to be BitGo. Asset manager Wave Digital Assets and financial firm Rosemawr Management designed the bond to operate within existing guidelines for municipal and corporate securities.
According to the designers, participating borrowers are expected to overcollateralize the bond with approximately 160% of its value in Bitcoin. If the cryptocurrency’s value drops below around 130% of the bond’s face value, liquidation mechanisms would activate to protect the interests of bondholders.
“This structure demonstrates how public entities can collaborate with private finance to tap into digital assets while maintaining prudence,” said Les Borsai, co-founder of Wave Digital Assets. He described the goal as creating a bridge between traditional fixed-income products and the digital asset market to attract institutional investors.
BFA Executive Director James Key-Wallace confirmed that fees generated from the bond transaction will support local economic initiatives, specifically the Bitcoin Economic Development Fund. That program aims to bolster innovation and entrepreneurship within the state.
The approval follows earlier steps by New Hampshire legislators to integrate cryptocurrency into public finance. In May, Governor Kelly Ayotte signed a bill enabling municipal governments to invest in cryptocurrencies and precious metals. The state is also considering legislation to ease restrictions on cryptocurrency mining operations. A committee voted in October to advance the proposal for further study after two earlier deadlocks in the senate.
New Hampshire has maintained an ongoing interest in digital assets. As early as 2015, lawmakers introduced—but ultimately did not pass—a bill allowing residents to pay taxes and fees in Bitcoin. Nevertheless, observers have long viewed the state as welcoming to the cryptocurrency industry. Legal professionals, including anti-money laundering specialists, have cited New Hampshire as a potential alternative for firms seeking U.S.-based cryptocurrency operations. The state is also investing in other areas of technology and energy infrastructure.
The approval of the $100 million Bitcoin-backed bond represents a new chapter in New Hampshire’s approach to digital finance, focusing on innovation within the limits of existing financial regulation. As interest in crypto-backed securities grows, the project may signal how other municipalities could experiment with incorporating digital assets into public finance frameworks.
