NewsletterBitcoin News: First BTC-Backed $100M Municipal Bond Launches to Tap $140T Debt Market
Highlights
- New Hampshire has approves the first-ever Bitcoin-backed municipal bond.
- This opens the door for BTC and digital assets into the $140 trillion global debt market.
- New Hampshire was the first state to sign the strategic Bitcoin reserve bill into law.
In a major Bitcoin news today, New Hampshire has greenlighted the first-ever BTC-backed municipal bond. This marks a big milestone that could open the door to the $140 trillion global debt market for Bitcoin and digital assets. The move comes after New Hampshire became the first state to pass a “strategic Bitcoin reserve” bill into law.
Bitcoin News: New Hampshire Pioneers Bitcoin-Backed Municipal Bond
The first BTC-backed municipal bond launch is big news for New Hampshire. The state’s Business Finance Authority approved $100 million Bitcoin-backed municipal conduit bond, Eleanor Terrett said in an X post on November 19.
The state government is tapping BTC as collateral to raise funds for public projects. This opens the door for digital assets into the $140 trillion global debt market. The Bitcoin bond is designed by Wave Digital Assets and Rosemawr Management to bridge crypto assets with the traditional debt market. Orrick law firm supported the compliance framework for the bond.
“Our goal is to bridge traditional fixed income with digital assets in a way that’s fully institutional, fully compliant, and globally scalable,” said Les Borsai, co-founder of Wave Digital Assets.
Under the proposed structure, the borrower will post about 160% of the bond’s value in Bitcoin as collateral, with liquidation happening only if BTC falls below 130%. This Bitcoin-backed municipal bond is made for institutions that want compliant BTC exposure.
New Hampshire Bitcoin Strategic Reserve
The bullish Bitcoin news comes after New Hampshire became the first state in the United States to adopt the Strategic Bitcoin Reserve bill into law. Governor Kelly Ayotte signed the HB 302 bill into law in May, approving the allocation of up to 5% of its treasury to digital assets.
The state treasurer can purchase Bitcoin and other digital assets with a market cap of at least $500 billion. Bitcoin is held in custody by BitGo. Notably, it also enabled the state to gain exposure to BTC through an exchange-traded fund (ETF).
The municipal bond leverages New Hampshire’s strategic Bitcoin reserve to secure funding for infrastructure and public projects. Notably, fees and returns from the BTC collateral will fund the state’s Bitcoin Economic Development Fund to support innovation and entrepreneurship.
At the time of writing, BTC price jumped 2% to $91,649 over the past 24 hours. The intraday low and high are $89,300 and $93,745, respectively. However, trading volume has dropped by almost 15% in the last 24 hours. In contrast, the total BTC open interest has dropped 1.64% to $65.19 billion over the last 24 hours, signaling that selling continues in derivatives markets.
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