Overview
- The Business Finance Authority authorized a $100 million bond that is described as the first municipal-style crypto-collateral model in the U.S.
- Wave Digital Assets and Rosemawr Management designed the structure with legal support from Orrick to align digital collateral with traditional fixed-income rules.
- Bitcoin collateral will be held by BitGo with about 160% initial coverage and an automated liquidation trigger near 130% to protect investors.
- The authority will act only as a conduit, meaning the state and taxpayers carry no repayment liability.
- Fees from the transaction and any collateral gains will go to the Bitcoin Economic Development Fund, with proponents seeking credit assessments and broader market adoption next.