New Hampshire launches the first bitcoin-backed municipal bond in the United States

ChainCatcher reported that New Hampshire, USA, has officially approved the nation's first municipal bond backed by bitcoin as collateral, 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 toward the $140 trillion global bond market.

The bond is authorized by the state's Business Finance Authority (BFA), but the risk is not borne by the state government or taxpayers. The security of the funds is ensured by over-collateralized bitcoin held in custody by BitGo. Borrowers are required to provide approximately 160% of the loan amount in BTC as collateral. If the collateralization ratio drops to around 130%, the system will automatically liquidate positions to protect bondholders' interests. New Hampshire Governor Kelly Ayotte stated that this is a "historic breakthrough in the field of digital finance," as it can attract investment without using public funds.

The structure was designed by Wave Digital Assets and Rosemawr Management, with Orrick law firm participating in the compliance framework. Industry insiders believe this model may pave the way for digital assets to enter the municipal and corporate bond fixed income markets, and lay the foundation for future bitcoin bonds truly issued by state treasuries.