New Hampshire has made history by approving a $100 million municipal bond backed by bitcoin, marking the first such initiative at the state level in the United States.
The move is part of a broader strategy to diversify public reserves and introduce innovative municipal finance models.
State leads in bitcoin reserves
Earlier this year, New Hampshire passed legislation allowing its treasury to invest up to 5% of public funds in digital assets, including bitcoin, creating the nation’s first strategic bitcoin reserve.
This reserve is designed to provide both diversification and potential upside from bitcoin’s price performance.
Pioneering bond structure
The newly approved municipal bond will treat bitcoin as high-grade collateral within the framework of traditional finance. Governor Kelly Ayotte and lawmakers view this as a test case for leveraging bitcoin in public funding.
The fees and any potential returns generated from the bitcoin collateral will be allocated to the state’s Bitcoin Economic Development Fund.
Nationwide innovation in public finance
The success of this bond could influence broader adoption of bitcoin-backed debt products by other municipalities.
It highlights growing interest among US states in utilizing bitcoin for alternative funding mechanisms.
State officials commented on the bond’s significance:
“This bond allows us to lead in modern municipal finance while responsibly exploring bitcoin’s role in our reserves.”
Broader context of bitcoin in public finance
While New Hampshire pioneers this approach, other states such as Texas and Arizona have also considered measures to add bitcoin to their treasuries, reflecting a shifting landscape in public sector finance.
