On November 19, New Hampshire became the first state to approve a Bitcoin-backed municipal bond, a notable step for digital assets within the vast debt market ecosystem. The Business Finance Authority (BFA) approved a $100 million issuance, enabling borrowers to use Bitcoin held by a private custodian as collateral. Importantly, the bond is not backed by the state government or taxpayers.

In this arrangement, the BFA acts as an oversight intermediary, approving and monitoring the transaction without assuming repayment risk, with investor protections anchored by BitGo-held Bitcoin custody.