New Hampshire is set to become the first state to issue a municipal bond backed by Bitcoin, following approval by the New Hampshire Business Finance Authority (BFA) Board of Directors.
The $100 million bond issuance reflects a growing effort to integrate digital assets into traditional capital markets without exposing state funds or taxpayers to financial risk.
The bond structure was designed by Wave Digital Assets, a firm specializing in digital asset investment infrastructure, in collaboration with Rosemawr Management, an alternative investment adviser with a focus on municipal and sustainable infrastructure. BitGo Trust, a digital asset custodian regulated in the U.S., will hold the Bitcoin used as collateral in cold storage with enhanced security protocols.
According to the BFA, the bond will be issued after receiving final approval from the Governor and Executive Council. The initiative is intended to expand access to municipal debt markets for digital asset companies through a fully collateralized and regulated framework.
“This clearly positions New Hampshire as a global leader in responsible crypto finance,” said James Key-Wallace, Executive Director of the BFA. “We’re proud to help develop new tools that allow companies in the digital-asset ecosystem to access capital safely and effectively — while ensuring no taxpayer funds or state guarantees are at risk.”
Governor Kelly Ayotte praised the move as a step toward economic innovation. “This is an innovative way to bring more investment opportunities to our state and position us as a leader in digital finance without risking state funds or taxpayer dollars,” she said. Ayotte credited the BFA and its partners for their efforts and expressed support for further collaboration on financial technology initiatives.
Under the planned structure, investors will be able to purchase bonds issued by the BFA. The Bitcoin that backs the bonds will be securely stored and managed by BitGo Trust, providing institutional-grade custody aligned with industry regulations.
“This isn’t just one transaction, it’s the opening of a new debt market,” said Les Borsai, co-founder of Wave Digital Assets. He emphasized the firm’s goal of bridging traditional fixed income markets with digital asset infrastructure in a way that is scalable and compliant with financial regulations.
Mike Belshe, CEO and co-founder of BitGo, described the bond as an example of public-private collaboration to advance financial innovation. “We’re proud to provide the secure custody foundation that enables this first-of-its-kind bond issuance,” Belshe said.
Revenue generated by the BFA from the issuance will help establish a new program called the Bitcoin Economic Development Fund. The state’s Business Finance Authority initially approved the bond in mid-November. This fund will support future BFA initiatives aimed at promoting business development and financial innovation across the state.
The planned bond issuance marks a significant moment in the convergence of cryptocurrency and traditional finance, one of the most significant since the arrest and imprisonment of former FTX CEO Sam Bankman-Fried.
If successful, it could present a model for other jurisdictions interested in similar efforts to diversify funding sources and modernize infrastructure investment platforms.
