The state of New Hampshire in the United States has approved the issuance of the first municipal bond backed by Bitcoin.

On November 19th, New Hampshire has just attained the distinction of being the first state to give its approval to a Bitcoin-backed municipal bond. This development paves the way for digital assets to make their entry into the $140 trillion global debt market. On Monday, the state's Business Finance Authority (BFA) gave the green light to an unprecedented $100 million Bitcoin-backed bond issuance. This allows companies to borrow funds by using Bitcoin held in a private custodian as collateral. It is reported that although the BFA is a state agency, the bond is not backed by the state government or taxpayers. The BFA merely acts as an intermediary entity responsible for approving and overseeing the transaction, without shouldering the repayment risk. Instead, investor interests are safeguarded by the Bitcoin held in custody by BitGo.