Key Takeaways
- New Hampshire’s Business Finance Authority is launching America’s inaugural rated municipal bond backed by bitcoin
- The bond received a provisional Ba2 rating from Moody’s — classified as speculative grade, beneath investment-grade status
- BitGo provides custody for the bitcoin collateral, requiring 1.6x overcollateralization
- Taxpayer funds face zero exposure; New Hampshire functions solely as a conduit issuer
- The initial bond offering totals $100 million, developed by Wave Digital Assets alongside Rosemawr Management
The New Hampshire Business Finance Authority (BFA) is moving forward with plans to launch what appears to be the nation’s first rated municipal bond collateralized by bitcoin.
On Tuesday, Moody’s Ratings issued a provisional Ba2 rating for the bond. This designation positions it within speculative-grade classification, sitting two levels beneath investment-grade securities, which indicates notable credit exposure.
The provisional nature of the rating stems from Moody’s awaiting finalized legal documentation before delivering its complete assessment. An official issuance date has not been announced.
Bitcoin maintained in custody by BitGo Trust Company functions as the bond’s collateral. Should payment obligations arise, the bitcoin assets will be converted to fiat currency to satisfy interest payments and principal obligations.
The framework mandates 1.6x overcollateralization. Additional safeguards include automatic liquidation triggers activated when the loan-to-value ratio falls below predetermined thresholds.
Moody’s applied a 72% advance rate alongside compressed liquidation timeframes when evaluating potential downside scenarios. The agency identified bitcoin’s price fluctuations as the primary driver behind the Ba2 assessment.
S&P Global observed earlier this month that while bitcoin’s volatility has decreased progressively, it remains significantly elevated compared to gold and the Nasdaq-100.
Taxpayer Funds Remain Protected
These bonds feature limited recourse structure. This ensures that New Hampshire’s public treasury cannot be tapped to satisfy bondholder claims regardless of circumstances.
Moody’s verified this arrangement in its assessment, declaring that “no public funds of the State of New Hampshire may be used to pay amounts under the Rated Bonds.”
New Hampshire operates as a conduit issuer in this transaction, mirroring the approach states occasionally employ when facilitating bonds for private ventures. The state’s creditworthiness does not underwrite this offering.
Development and Structure
The New Hampshire BFA greenlit this initiative in November 2025. The authority announced at that time it would become the world’s first state-level entity to launch such a financial instrument.
Asset management firm Wave Digital Assets created the program structure in collaboration with fixed-income specialist Rosemawr Management. BitGo Trust Company handles custodial responsibilities for the bitcoin collateral.
The bond program launches with a $100 million capacity. It enables corporations to secure financing against bitcoin holdings with overcollateralization requirements.
Revenue generated through program fees will capitalize a Bitcoin Economic Development Fund. According to the BFA, this fund aims to accelerate business expansion and financial technology innovation throughout New Hampshire.
This transaction introduces bitcoin to a segment of financial markets where it has maintained minimal presence — rated fixed-income securities issued via public channels.
On Monday, the Labor Department unveiled a proposed regulation, stemming from a President Trump executive order, that would broaden access to digital asset investments within retirement accounts.
