Bitcoin Updates Today: Institutions Access Secure Bitcoin Investments Through New Hampshire’s Risk-Managed Bond
- New Hampshire becomes first U.S. state to approve a $100M Bitcoin-backed municipal bond, using digital assets as collateral for business loans. - The 160% collateralization model with automatic liquidation below 130% ensures taxpayer protection and institutional-grade security via BitGo custody. - Proceeds fund a Bitcoin Economic Development Fund, with Governor Ayotte calling it a "milestone" for innovation without public risk exposure. - The bond's success could inspire nationwide crypto-backed municipa
New Hampshire has set a precedent as the first state in the U.S. to greenlight a municipal bond secured by Bitcoin, representing a significant advancement in merging digital currencies with conventional financial systems. The $100 million bond, approved by the state's Business Finance Authority (BFA) on November 17,
This bond uses a 160% collateral requirement, meaning borrowers must provide
Proceeds and profits from the bond will support the Bitcoin Economic Development Fund, a state-backed program designed to encourage innovation and entrepreneurship.
This structure reflects a growing institutional interest in Bitcoin.
This move could pave the way for similar actions in other states. Texas and Ohio have already passed laws focused on Bitcoin, with Texas launching the first state Bitcoin reserve through SB21. Experts believe that if New Hampshire’s approach is successful, it could inspire a surge of crypto-backed municipal bonds across the country, tapping into the $58 trillion U.S. bond market.
Les Borsai, co-founder of Wave Digital Assets, highlighted the bond’s significance in connecting traditional fixed income with digital assets, describing it as a "fully institutional, compliant, and scalable" solution. The BFA’s self-sustaining model and adherence to municipal bond regulations further reinforce its potential as a template for others to follow.
As this new approach is tested in the bond market, the results could transform how states utilize digital assets for economic development. Despite ongoing volatility in Bitcoin’s price and regulatory uncertainties, New Hampshire’s strategy presents a careful yet forward-thinking model for incorporating cryptocurrency into public finance.
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.
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