TechFlow news, November 19 — According to Crypto in America, the New Hampshire Bureau of Finance and Administration (BFA) has approved a $100 million Bitcoin-backed municipal bond, marking the first such project in the United States. The bond allows companies to borrow against over-collateralized Bitcoin, with a collateralization ratio of approximately 160%. If Bitcoin's value falls below 130%, a liquidation mechanism will be triggered to protect bondholders' interests.
The bond is not guaranteed by the state government or taxpayers, but secured by Bitcoin custody provided by BitGo. This move follows the state's May legislation allowing the state treasury to invest up to 5% of public funds in digital assets.
Analysts believe that if successful, this model could pave the way for digital assets to enter the $140 trillion global debt market and provide a blueprint for other states to follow.
