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

BlockBeats News, November 19th, New Hampshire has just become the first state to approve a Bitcoin-backed municipal bond, paving the way for digital assets to enter the $140 trillion global debt market.

On Monday, the state's Business Finance Authority (BFA) approved an unprecedented $100 million Bitcoin-backed bond issuance, allowing companies to borrow using Bitcoin held by a private custodian as collateral.

Reportedly, although the BFA is a state agency, the bond is not backed by the state government or taxpayers. The BFA serves solely as an intermediary entity responsible for approving and overseeing the transaction without taking repayment risk, with investor interests secured by Bitcoin held in custody by BitGo.