New Hampshire to Issue First Rated Bitcoin-Backed Bond

The New Hampshire Business Finance Authority is set to launch a pioneering bitcoin-backed bond, marking a key step in integrating cryptocurrency into public finance.

Moody’s has assigned a provisional Ba2 rating, two notches below investment grade. The bonds will be collateralized with bitcoin BTC $68,874.54 held in custody by BitGo, which will be sold if needed to cover interest and principal payments.

“The Rated Bonds will be collateralized by a loan… backed by Bitcoin, a digital currency,” Moody’s said. Repayment depends entirely on bitcoin rather than cash flows, with safeguards including 1.6x overcollateralization and liquidation triggers if the loan-to-value ratio deteriorates.

Limited recourse terms mean no public funds are at risk, with the state authority serving as a conduit rather than providing a guarantee. The Ba2 rating reflects bitcoin’s volatility and the transaction’s structure, signaling that credit agencies are developing frameworks for crypto-backed debt.

The issuance comes as institutions explore new uses for bitcoin beyond trading. The Labor Department recently proposed rules expanding access to digital assets in retirement accounts, following a Trump-era executive order.