New Hampshire Pioneers Bitcoin-Backed Bond Amidst Calls for Strong Stablecoin Regulation

New Hampshire Pioneers Bitcoin-Backed Bond Amidst Calls for Strong Stablecoin Regulation

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New Hampshire authorities are set to issue a $100 million bond collateralized by Bitcoin, with BitGo designated as the custodian and liquidation agent. This move, despite receiving a speculative-grade rating from Moody’s, marks a significant step in institutional adoption of digital assets. Concurrently, Federal Reserve's Michael Barr has emphasized the need for stringent regulatory and technological oversight for stablecoins, referencing a 'long and painful history' to advocate for measures preventing their use in illicit activities.

BitGo will serve as custodian and liquidation agent responsible for liquidating bitcoin to make interest and principal payments.

Michael Barr called for for regulatory and technological measures that ensure stablecoins will not be used for illicit activities.