A US State Signs First-of-its-Kind Bitcoin (BTC) Decree!
While the US is trying to erase the traces of the longer-than-expected government shutdown, a state has made a first-of-its-kind move against Bitcoin.
Accordingly, the United States state of New Hampshire has approved the issuance of a Bitcoin (BTC)-backed municipal bond.
A First-of-its-Kind Bitcoin Move in the US!
The New Hampshire Business Finance Authority (BFA) has approved a $100 million Bitcoin-backed municipal bond, the first of its kind in the United States, according to Crypto in America, a cryptocurrency-focused media outlet.
This was the first instance of a US state government using Bitcoin as collateral for such a financial instrument.
Fees and returns from the BTC collateral will fund the state's Bitcoin Economic Development Fund to support innovation and entrepreneurship. The collateral will be held by the custodian BitGo.
According to details, municipal bonds are designed to allow a company to raise funds without selling its Bitcoin holdings. The collateral ratio is set at approximately 160% of the bond amount, and if the Bitcoin price declines and collateralization falls below 130%, an automatic collateral liquidation mechanism will be activated to protect investors.
New Hampshire's move, the first example of a digital asset being linked to the traditional bond market, raises the possibility of opening the doors to a new structure for the $140 trillion global debt market.
This decision follows the state's previous decision to allocate up to 5% of its treasury to digital assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
XRP News Today: SEC Grants Approval for XRP ETF as a Commodity, Sidestepping Security Status Debate
- SEC approves Franklin Templeton's XRP ETF (ticker EZRP), marking XRP's institutional legitimacy as a commodity asset. - The ETF, holding XRP via Coinbase Custody, avoids airdrops/forks and sidesteps SEC's security classification dispute over XRP. - Market sees it as a catalyst for institutional crypto adoption, with potential inflows mirroring Bitcoin/ETH ETF success. - XRP's 11% post-approval price drop and regulatory uncertainty highlight risks despite 0.19% competitive fee structure.
Bitcoin Updates: Amid Bitcoin’s Plunge, Saylor’s Company Amasses $835M, Bucking the Market Sell-Off
- Michael Saylor's Strategy Inc. bought 8,178 BTC ($835.6M) despite Bitcoin's 25% drop, boosting holdings to 649,870 BTC ($61.7B). - The purchase, funded by perpetual preferred stock sales, reflects confidence in Bitcoin's long-term value despite market selloffs and ETF outflows. - Saylor's firm maintains a conservative leverage ratio (8B debt vs. 61B BTC) and claims resilience against multi-year price collapses. - Institutional Bitcoin adoption persists as Harvard allocates $443M to crypto ETFs, though St
Prisoner Exchange Approaches Amid Intensified Russian Energy Attacks on Ukraine
- Ukraine and Russia near agreement to resume large-scale prisoner exchanges, targeting 1,200 Ukrainian captives by November, mediated by Turkey and the UAE. - Russia escalates energy infrastructure attacks, including Odesa solar plant strikes, while Ukraine retaliates with strikes on Russian oil refineries and drone facilities. - Trump administration proposes 28-point peace plan for Ukraine, inspired by Gaza ceasefire model, with unclear details on territorial concessions and NATO membership. - Kyiv secur
Bitcoin News Update: Trump Supporter Gill Increases Bitcoin Investment by $300K Despite Crypto Downturn
- Rep. Brandon Gill (R-Texas) added $300K to Bitcoin and BlackRock's IBIT ETF, totaling $2.6M in crypto investments amid market declines. - His strategy involves buying during dips, including $1.5M in BTC purchases below $100,000 in June-July 2024. - Gill missed reporting $500K in Bitcoin buys under the STOCK Act, raising transparency concerns despite nominal $200 fine penalties. - The purchases align with Trump's pro-crypto policies, including a "strategic Bitcoin reserve" initiative and reduced regulatio
Trending news
MoreCrypto prices
More
