Bitcoin as collateral for debt? The US opens a new market

🏛️Bitcoin enters the municipal bond market: New Hampshire has done what until yesterday was considered fantastic.

The financial history of the US has received a new chapter — and surprisingly, it was not written by Wall Street banks, but by a relatively small but daring state: New Hampshire. It became the first in the world to issue a municipal bond backed by Bitcoin. Yes, the same “digital gold” that 10 years ago was called a toy for geeks.

Today, it is officially a collateral asset in a government debt instrument.

What exactly happened?

The state approved the issuance of a conduit bond worth $100 million, where Bitcoin is used as collateral.

This means:

• New Hampshire does not risk tax revenues (the state acts only as a conduit issuer, without financial obligations).
• The collateral is fully managed by the structure taking the bond.
• Bitcoin serves as collateral, which is automatically regulated.

Protection against default: the financial cushion of the 21st century

The most technically interesting part is the protection mechanism. If Bitcoin’s price drops below a certain level, automatic liquidation of collateral is triggered, i.e., BTC is sold and the bond is repaid early.

This removes risks for investors, makes default practically impossible, turning the bond into a hybrid of traditional government debt with next-generation derivatives.

What used to be done via complex and expensive bank structures is now configured through smart logic and transparent BTC collateral.

A new trillion-dollar market

Here’s where it gets really interesting:

• The potential global market for such instruments is estimated at $140 trillion.
• In the US — around $58 trillion.

In other words, this is not just a “new niche” — it is a door leading to a massive, long-established debt market where Bitcoin simply did not have an entry ticket until today.

And now the entry is open.

New Hampshire — a small state with big ambitions

New Hampshire has previously allowed the treasury to hold up to 5% of government funds in digital assets.
The step toward Bitcoin bonds is a logical but bold continuation of the course toward modernizing government finances.

The state has effectively:

• recognized BTC as a full participant in the debt market,
• created a legal precedent,
• opened the gates for other municipalities, counties, and even countries.

Why is this a historic moment?

For the first time in the modern financial system, a government instrument takes collateral not in dollars, not in gold, not in funds, but in Bitcoin — an asset that no central bank controls.

Many analysts call this:

• “the moment Bitcoin enters the real economy,”
• “the first step toward crypto-government finances,”
• or even “the beginning of a new phase of BTC institutionalization.”

What’s next?

If the model proves effective, and the market observes it closely, other US states, European municipalities, and countries with government funding deficits could follow New Hampshire’s step.

💰 The opportunity to take cheap loans against digital gold seems too tempting to ignore.