The New Hampshire Secretary of State’s workplace introduced that lawmakers would focus on issuing $100 million in bonds backed by Bitcoin (BTC) at a public listening to.
In an replace to the New Hampshire governor and government council agenda, the state’s Enterprise Finance Authority (BFA) has scheduled a gathering for Wednesday concerning the proposed issuance of $100 million in BTC-backed bonds. The BFA permitted the bond in November 2025, saying that it deliberate to challenge the autos upon approval from Governor Kelly Ayotte and the state’s five-member government council.
“That is an revolutionary approach to carry extra funding alternatives to our state and place us as a frontrunner in digital finance with out risking state funds or taxpayer {dollars},” stated Ayotte on the bonds, following the BFA approval.
The potential high-value Bitcoin-backed bonds signaled the US state’s transfer towards friendlier digital asset insurance policies. New Hampshire was the primary state to approve a regulation establishing a strategic Bitcoin reserve in Might 2025, permitting the federal government to take a position 5% of public funds in digital property with a market capitalization exceeding $500 billion.
New Hampshire governor signing the Might 2025 crypto reserve invoice into regulation. Supply: Kelly Ayotte
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Not like conventional municipal bonds, a BTC-backed bond could possibly be an revolutionary monetary instrument, however one which doubtlessly introduces “substantial danger,” in response to David Krause, an emeritus affiliate professor of finance at Marquette College. Krause authored an evaluation of the proposed bond in April, saying that whereas a personal borrower, CleanSpark, was placing up the funds for collateral, this strategy provided “no recourse to state funds or taxpayers.”
“Whereas the bond could function a proof of idea for integrating digital property into structured finance, it’s not nicely suited as a general-purpose public finance instrument,” stated the professor. “Its major significance lies in highlighting the challenges of adapting conventional monetary frameworks to extremely unstable digital property.”
In March, Moody’s assigned the Bitcoin bond a provisional Ba2 score, falling beneath the corporate’s “speculative grade” class for autos with substantial credit score danger.
El Salvador’s Bitcoin-backed bond mission fizzled out
Though New Hampshire could turn out to be one of many first US states to challenge Bitcoin-backed bonds, the thought beforehand gained traction in El Salvador.
Beneath President Nayib Bukele, who additionally pushed for a regulation that later established Bitcoin as authorized tender within the nation, El Salvador’s authorities introduced $1 billion in Bitcoin-backed “Volcano Bonds” to fund a proposed Bitcoin Metropolis mission. Proposed in 2022, the thought by no means got here to fruition following a crypto market downturn.
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