- New Hampshire approves a $100M Bitcoin-backed municipal bond using BTC as collateral under HB 302.
- The structure requires 160% BTC collateral and uses BitGo custody to support institutional access.
- The bond offers regulated BTC exposure as market activity shows mixed flows during the launch period.
New Hampshire approved the first Bitcoin-backed municipal conduit bond, creating a new channel for BTC in public finance. The $100 million structure uses Bitcoin as collateral, and it builds on the state’s Strategic Bitcoin Reserve law. Officials and originators position the product for institutional fixed income access to crypto.
Bond Mechanics and Legal Framework
The bond was developed by Wave Digital Assets and Rosemawr Management, and Orrick advised on legal compliance. Borrowers must post roughly 160% of the bond value in Bitcoin, and liquidation triggers if BTC falls under about 130%. The structure therefore keeps a sizable collateral buffer, and it is designed to reduce forced liquidations in volatile markets.
BitGo will custody the Bitcoin under the reserve rules created by HB 302, and the law allows up to 5% of treasury assets in qualifying digital assets. The reserve also permits ETF exposure, and fees from collateral will flow to the state’s Bitcoin Economic Development Fund. These rules provide a governance layer for asset handling and fund allocation.
Les Borsai, co-founder of Wave Digital Assets, said the design aims to bridge fixed income with digital assets. He described the model as institutional and compliant, and he noted plans to scale globally. The statement frames the bond as a regulated pathway for institutional BTC exposure.
Market Context and Institutional Interest
The bond follows New Hampshire’s Strategic Bitcoin Reserve adoption, and that law sets the policy basis for collateral use. Governor Kelly Ayotte signed HB 302 earlier this year, and the measure established custody and allocation thresholds. This legal groundwork allowed the Business Finance Authority to approve the conduit bond.
Market data shows Bitcoin trading near $91,649 during the session noted, and intraday range hit $89,300 to $93,745. Volume fell while open interest edged down, and these dynamics indicate mixed derivatives flows during the launch period. Observers note that institutional demand differs from retail patterns, and bond buyers may seek regulated exposure.
The structure targets institutions that want BTC exposure without direct custody of tokens. Proponents argue the product could expand choices in municipal funding, and stakeholders expect continued regulatory and market scrutiny.
