The New Hampshire Business Finance Authority (BFA) Board of Directors has approved a groundbreaking financing structure for a $100 million municipal bond backed by Bitcoin, positioning New Hampshire as the first state globally to issue such a bond. This initiative represents a significant step in integrating digital assets with traditional capital markets.
This transaction was conceptualized by Wave Digital Assets, an SEC-registered investment advisory firm, in collaboration with Rosemawr Management, an alternative investment manager specializing in municipal and sustainable infrastructure. Orrick, a global law firm, provided legal counsel for the BFA on the transaction’s structuring. BitGo Trust Company, Inc., a digital asset infrastructure provider, will serve as the custodian for the Bitcoin collateral, ensuring its security in regulated cold storage with multi-layer security protocols.
Upon approval by the Governor and Executive Council, the BFA will issue the bond, marking a precedent for digital asset companies to access the municipal bond market through an institutional, collateralized framework. James Key-Wallace, Executive Director of the Business Finance Authority, stated, “This clearly positions New Hampshire as a global leader in responsible crypto finance. 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 Digital Assets aims to create a bridge between the digital asset ecosystem and traditional debt markets, allowing Bitcoin to function as dependable collateral under the same regulatory standards as municipal and corporate bonds. Investors will have the opportunity to purchase these BFA-issued bonds.
New Hampshire Governor Kelly Ayotte commented on the initiative, saying, “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.”
Les Borsai, Co-Founder of Wave Digital Assets, emphasized the broader impact, stating, “This isn’t just one transaction, it’s the opening of a new debt market. Our goal is to bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant, and globally scalable.” Mike Belshe, CEO and Co-Founder of BitGo, added, “New Hampshire’s leadership proves what’s possible when government and industry work together to responsibly advance financial innovation.”
The BFA’s fees generated from this transaction will be allocated to the Bitcoin Economic Development Fund, which will support programs designed to foster business growth and financial innovation throughout New Hampshire. Orion Mountainspring, a partner at Orrick, noted that 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.”
New Hampshire has a history of encouraging financial innovation, being the first U.
S. state to authorize the purchase and custody of Bitcoin and to pass a cryptocurrency reserve law. The Bitcoin trust for this bond will be held by a New Hampshire Statutory Trust, further integrating the transaction within the state’s fintech ecosystem.
