New Hampshire has approved the issuance of a $100 million municipal bond backed by Bitcoin, in what appears to be the first structure of its kind at the US state level.
minute From a November 17 meeting of the New Hampshire Business Finance Authority (BFA), the state’s business financing agency, shows the board planned “to consider the approval of a resolution authorizing $ 100,000,000 bonds for a project to acquire and hold digital currency.”
minute From the next day’s note the directors voted to “approve the initial official intent, without reservation, to issue a tax revenue bond for Waverose Depositor, LLC of up to $100,000,000.”
According to a crypto Wednesday in America reportThe bonds is backed by bitcoin (BTC) and will let companies borrow against overcollateralized BTC held by a private custodian. The state or taxpayer does not return the bond; Instead, the BFA approved and oversees a private deal, while Bitcoin – reportedly held in custody by Bitgo – covers the investors.
According to the report, Asset Manager Wave Digital Assets and Bond Specialist Rosemawr Management designed the bond to use Bitcoin as collateral under the same rules governing municipal and corporate bonds. Wave co-founder Les Borsai said the goal is to “bridge traditional fixed income with digital assets” for institutional investors.
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“We believe this structure shows how the public and private sectors can work together to responsibly unlock the value of digital assets and digital asset reserves,” he added.
The borrower is expected to post approximately 160% of the bond’s value in Bitcoin as collateral, and if the price of BTC falls below about 130%, a liquidation will ensure that the bondholders remain intact. According to BFA Executive Director James Key-Wallace, fees from the transaction will fund a local innovation and entrepreneurship program, the Bitcoin Economic Development Fund.
New Hampshire is diving headfirst into crypto
The news follows in New Hampshire Became the first US state To allow the government to invest in cryptocurrencies in May after Governor Kelly Ayotte signed a bill allowing the municipality to “invest in cryptocurrency and precious metals.”
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New Hampshire is also working on a bill to deregulate local cryptocurrency mining operations. In late October, a committee voted 4–2 to Submit the proposal for further review In an interim study after it was deadlocked in the state Senate twice.
The local administration looked especially welcoming to the cryptocurrency industry. In early February, Brendan Cochrane, an anti-money laundering specialist at YK Law in New York City, argued that could be an alternative for crypto companies relocating to the Bahamas.
The latest moves build on a longer history of engagement in crypto. Back in 2015, New Hampshire was already working on a bill that would allow the state government to accept tax payments and fees in Bitcoin.
The bill failed In 2016, but it shows how early the local administration began to show interest in this asset class. In addition, as early as 2016, some advocates argued that New Hampshire is Among the most Bitcoin-friendly communities in the world.
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