New Hampshire just said no to what would have been one of the most ambitious experiments in public crypto finance. The state’s Executive Council voted 3-2 on July 8 to reject a proposal that would have allowed up to $100M in Bitcoin-backed municipal bonds to hit the market.
The plan was straightforward in concept, if not in execution: let private-sector digital asset firms tap into municipal bond markets using Bitcoin as collateral. No taxpayer money on the line, no impact to the state’s general obligation credit.
How the deal was structured
The proposal came from New Hampshire’s Business Finance Authority, which had given its own board approval back on November 18, 2025. Jefferies, the investment bank, structured the deal as a private placement, meaning it wouldn’t have been sold to everyday retail investors on the open market.
The bonds required 160% overcollateralization. In English: for every $100 in bonds issued, $160 worth of Bitcoin had to sit behind them. If the value of that Bitcoin collateral fell below 130% of the bond principal, automatic liquidation triggers would kick in, selling the Bitcoin to protect bondholders.
