New Hampshire has authorized a $100 million municipal bond backed by Bitcoin, creating what appears to be the first structure of its kind at the U.S. state level. The New Hampshire Business Finance Authority approved the taxable conduit revenue bond for WaveRose Depositor during meetings held November 17 and 18.
Meeting minutes show directors voted to approve preliminary official intent to issue the bond with no reservation. The structure lets companies borrow against overcollateralized Bitcoin held by private custodian BitGo, with neither the state nor taxpayers backing the arrangement.
Product Design and Objectives
Asset manager Wave Digital Assets and bond specialist Rosemawr Management designed the product to utilize Bitcoin as collateral under existing rules governing municipal and corporate bonds. The framework aims to provide institutional investors access to blockchain-based collateral through familiar fixed-income structures.
Official Reactions and Future Implications
Governor Kelly Ayotte celebrated the bond's debut as an innovative method to attract investment opportunities while positioning New Hampshire as a leader in digital finance. The arrangement brings capital to the state without risking state funds or taxpayer dollars, according to Ayotte's statement.
State legislator Keith Ammon described the bond as a proof-of-concept for using Bitcoin as collateral in government finance. The structure potentially leads toward a Bitcoin bond issued directly by a state treasury if the initial offering proves successful and demonstrates viability.
Trade Nation Senior Market Analyst David Morrison expects the bond will help legitimize Bitcoin beyond its current role as primarily a speculative asset. Successful execution could indicate a route for Bitcoin to be used more broadly in debt markets, with potential gains from Bitcoin-based collateral serving as an incentive for wider adoption.
Morrison stated that New Hampshire completed much of the hard work establishing legalities and precedent, making it easier for other states to follow if the structure succeeds.
CoinJar CEO Asher Tan stated the move highlights Bitcoin's potential as a store of value and could inspire other states to consider similar approaches. As more governmental and institutional players explore crypto-backed financial products, the market will likely see increased legitimacy and investor confidence driving mainstream adoption, according to Tan's analysis.
New Hampshire's Broader Crypto Initiatives
The bond arrives as numerous U.S. states make moves toward introducing strategic crypto reserves. New Hampshire became the first U.S. state to allow government cryptocurrency investment in May after Governor Ayotte signed legislation permitting municipal investment in crypto and precious metals. The state also works on a bill to deregulate local cryptocurrency mining operations following committee review in late October.