The first Bitcoin municipal bond in the United States has been approved, opening the door to a global $10 billion debt market.

Recently, New Hampshire approved the first municipal bond in the United States backed by Bitcoin. This groundbreaking initiative could open the door for digital assets to enter the global debt market valued at approximately $140 trillion.

On Monday, the state's Business Finance Management Bureau approved a $100 million Bitcoin-backed bond program. Under this scheme, businesses can use Bitcoin held by private custodians for over-collateralized loans, allowing them to finance without directly selling cryptocurrencies or triggering taxable events. This financing channel model does not rely on taxpayer funds and has no state government financial guarantees.

This bond project is jointly designed by Wave Digital Assets and Rosemawr Management, requiring the borrowing enterprise to provide approximately 160% of the loan value in Bitcoin as collateral, and establishing a safeguard mechanism when the collateral ratio falls to 130%. The transaction fees and profits generated by the project will be used to support the local Bitcoin economic development fund.

It is worth noting that this is yet another breakthrough for New Hampshire in the field of digital assets. A few months ago, the state became the first in the nation to allow state finances to invest up to 5% of public funds in digital assets. Governor Kelly Ayotte expressed pride in New Hampshire once again being the first state in the nation to embrace new technology.

Industry experts believe that this measure has far-reaching implications for the global debt market. Companies can not only connect traditional fixed income markets with digital assets under compliance, but also use Bitcoin as high-quality collateral to explore financing channels.

With the approval of the bonds, the state has also provided a regulatory framework that can be referenced by other regions, and demonstrated how to transform idle BTC reserves into financial tools that support economic development through institutional innovation, which may encourage more institutional investors to explore such financing methods.

In summary, the approval of state-level municipal bonds in the United States provides a replicable value template for global governments' idle crypto assets. This move not only offers a compliant financing channel for enterprises but also provides a clear pathway for institutional capital to safely participate in the crypto market, accelerating the historic transition of BTC from "hoarded wealth" to "liquid capital."

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