New Hampshire becomes the first state to approve a $100 million bitcoin-backed bond

New Hampshire has become the first state in the US to approve a municipal bond backed by bitcoin. On September 11, the state's Business Finance Agency (BFA) approved a first-of-its-kind $100 million bitcoin-backed bond, allowing companies to borrow funds using bitcoin as over-the-counter collateral. Although the BFA is a government agency, this bond is not backed by the government or taxpayers, which reduces the risks to the budget.

Source Cryptoinamerica

The move comes just a few months after the state authorized up to 5% of public funds to be invested in digital assets, creating the first strategic bitcoin reserve in the country. Governor Kelly Ayotte noted that this historic debt instrument will attract more investment and position the state at the forefront of digital finance without risking the state budget. Specialized companies Wave Digital Assets and Rosemawr Management developed this bond to connect digital assets with the traditional debt market.

If New Hampshire's model is successful, it could serve as an example for other states to integrate cryptocurrencies into the traditional financial system. If successful, the lack of assets could be overcome and institutional interest could grow, paving the way for new financial products based on bonds and derivatives. According to experts, innovations in the financial sector can boost the economy without additional risks for investors.