New Hampshire Makes History with World’s First Bitcoin-Backed Bond
The state of New Hampshire has always been liberty minded.
As such, they continue to create forward looking, business and finance strategies to help its citizens and businesses thrive.
Recently, New Hampshire has done it again with a landmark move for financial innovation.
New Hampshire has approved the world’s first conduit bond backed by Bitcoin. A move that many are saying will solidify the state’s position as a global leader in the integration of digital assets and traditional finance.
The $100 million issuance, facilitated by the state’s Business Finance Authority (BFA), establishes a groundbreaking model for cryptocurrency-backed financing while ensuring no exposure to state funds or taxpayers.
Pioneering Financial Structure
The transaction was conceptualized by Wave Digital Assets in partnership with Rosemawr Management, an alternative investment manager specializing in municipal and sustainable infrastructure.
The BFA, with legal structuring advised by Orrick, will issue the bond upon final approval by the Governor and Executive Council.
This first-of-its-kind bond functions as a conduit bond, allowing companies to borrow against an over-collateralized pool of Bitcoin.
BitGo Trust Company, Inc. will serve as the custodian, securing the digital assets in regulated cold storage with advanced multi-layer security.
The BFA acts solely as a facilitator, approving and overseeing the deal without assuming any repayment risk.
This structure ensures the state’s exposure is limited to reputational considerations rather than financial liability.
Vision for the Future of Finance
The initiative was born from collaboration with key players in the Bitcoin ecosystem, including major mining company CleanSpark and Anchorage Digital, the first federally chartered digital-native bank.
The idea, first announced by State Representative Keith Ammon at the Free State Bitcoin Digital Asset Conference, was to create a machine-like process for issuing these bonds to other miners, providing them with a way to leverage their holdings without triggering taxable events.
“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.”
Economic Impact & Strategic Reinvestment
Fees generated by the BFA from this transaction will support the creation of the Bitcoin Economic Development Fund.
This fund will be used to reinvest in programs that promote business growth and financial innovation across New Hampshire.
The BFA’s forward-thinking plan includes retaining half of the proceeds in Bitcoin to establish the first Bitcoin-backed loanable funds, designed to encourage new industry within the state.
New Hampshire Governor Kelly Ayotte praised the initiative, stating,
“I’m proud that New Hampshire is once again first in the nation to embrace new technologies with this historic Bitcoin-backed bond. 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.”
Blueprint for Global Adoption
Les Borsai, Co-Founder of Wave Digital Assets, emphasized the broader significance:
“This isn’t just one transaction, it’s the opening of a new debt market. Our goal is to bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant, and globally scalable.”
By holding the Bitcoin trust in a New Hampshire Statutory Trust, the state reinforces its role as a model for government-led advancement in digital finance.
This approach provides a more robust business plan than previous strategies, leveraging an appreciating asset rather than a depreciating one to back loans and foster economic growth.
The Final Word
New Hampshire’s approval of this Bitcoin-backed conduit bond marks a significant milestone in the evolution of finance.
By combining the stability of traditional bonds with the innovative potential of digital assets, the state has created a scalable blueprint for other jurisdictions to follow.
This initiative not only provides a new financing mechanism for digital-asset companies but also demonstrates a powerful, grassroots approach to influencing national financial policy through state-level innovation.
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