The New Hampshire Business Finance Authority (BFA) board of directors has approved a financing structure that will make New Hampshire the first state in the world to issue a municipal bond backed by bitcoin.
The $100 million inaugural issuance marks a major milestone in the integration of digital assets with traditional capital markets. The transaction was conceptualized by Wave Digital Assets, in partnership with Rosemawr Management, a leading alternative investment manager focused on municipal and sustainable infrastructure sectors, and the BFA. Orrick advised the BFA on the legal structuring of the transaction. BitGo Trust Company, Inc., the digital asset infrastructure company, will serve as custodian for the bitcoin collateral, securing it in regulated cold storage with advanced multi-layer security.
Upon approval by the Governor and Executive Council, the BFA will issue the bond, marking the first time a digital-asset company accesses the municipal bond market through an institutional, collateralized structure.
“This clearly positions New Hampshire as a global leader in responsible crypto finance,” said James Key-Wallace, executive director of the Business Finance Authority. “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.”
Wave’s goal is to build a bridge between the digital-asset ecosystem and the traditional debt markets — a system where bitcoin can serve as dependable collateral, regulated under the same standards that govern municipal and corporate bonds. Under the proposed structure, investors may purchase the BFA-issued bonds.
“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,” said New Hampshire Governor Kelly Ayotte.
“This isn’t just one transaction, it’s the opening of a new debt market,” said Les Borsai, co-founder of Wave Digital Assets. “Our goal is to bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant and globally scalable. We believe this structure demonstrates how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves.”
BFA’s fees from the transaction will support the creation of the Bitcoin Economic Development Fund, allowing the Authority to reinvest in programs that promote business growth and financial innovation across New Hampshire.
“We are excited to support the State of New Hampshire in launching the first municipal security backed by cryptocurrency,” added Orion Mountainspring, partner at Orrick. “The BFA has set the precedent for how municipalities can leverage emerging technologies like the blockchain to broaden their investor base, reduce the cost for funding for their constituents and open new pathways to access capital markets. This is a game-changer for the world of digital currency and municipal transactions.”
New Hampshire was the first state in the U.S. to pass a cryptocurrency reserve law, allowing state-chartered institutions to hold bitcoin and other digital assets as part of their reserves. The bitcoin trust for this bond will be held by a New Hampshire Statutory Trust, further anchoring the transaction within the state’s growing fintech ecosystem.
The New Hampshire Business Finance Authority (BFA) board of directors has approved a financing structure that will make New Hampshire the first state in the world to issue a municipal bond backed by bitcoin.
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