New Hampshire, USA launches the first Bitcoin-backed municipal bond

New Hampshire, USA, has officially approved the nation's first municipal bond backed by Bitcoin, with a scale of $100 million. This marks the first time digital assets have entered the traditional municipal financing system and is seen as an important step for Bitcoin towards the $140 trillion global bond market.

The bond is authorized by the state's Business Finance Authority (BFA), but it does not carry the risk of the state government or taxpayers. The safety of the funds is secured by over-collateralized Bitcoin held in custody by BitGo. Borrowers must provide approximately 160% of BTC as collateral, and if the collateral ratio falls to about 130%, the system will automatically liquidate to protect the rights of bondholders. New Hampshire Governor Kelly Ayotte stated that this is a "historic breakthrough in the digital finance sector," which can attract investment without using public funds.

The structure was designed by Wave Digital Assets and Rosemawr Management, with Orrick law firm involved in building the compliance framework. Industry insiders say this model may pave the way for digital assets to enter municipal bonds, corporate bonds, and other fixed-income markets, laying the foundation for future Bitcoin bonds issued directly by state treasuries.