Quick Summary
- New Hampshire’s Business Finance Authority is launching America’s first rated municipal bond backed by bitcoin
- The bond received a provisional Ba2 rating from Moody’s — classified as speculative grade, falling short of investment-grade status
- BitGo holds the bitcoin collateral in custody, with a 1.6x overcollateralization requirement
- Taxpayer funds face zero risk; 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 on the verge of launching what appears to be the first rated municipal bond in the United States with bitcoin serving as the underlying collateral.
🚨NEW HAMPSHIRE TO ISSUE FIRST RATED BITCOIN-BACKED BOND
The New Hampshire Business Finance Authority plans to issue what appears to be the first Moody’s-rated Bitcoin-backed bond (Ba2).
The bond is backed by BTC held with BitGo and does not put state public funds at risk. pic.twitter.com/svYLhbtIXp
— Coin Bureau (@coinbureau) March 31, 2026
On Tuesday, Moody’s Ratings issued a provisional Ba2 rating for the bond. This classification puts it in speculative territory, sitting two levels beneath investment grade, which signals notable credit risk exposure.
The provisional status exists because Moody’s continues to await finalized legal documentation before delivering its complete assessment. No official issuance date has been announced yet.
Bitcoin stored with BitGo Trust Company acts as the underlying collateral. When payments become due, the bitcoin gets liquidated to satisfy both interest obligations and principal repayment.
The framework mandates 1.6x overcollateralization. Additionally, automatic liquidation triggers activate when the loan-to-value ratio falls beyond acceptable thresholds.
Moody’s applied a 72% advance rate combined with compressed liquidation timeframes when assessing potential downside scenarios. The rating agency identified bitcoin’s price fluctuations as the primary driver behind the Ba2 designation.
S&P Global observed earlier this month that while bitcoin’s volatility has diminished over recent years, it remains significantly elevated compared to gold and the Nasdaq-100.
Taxpayer Funds Completely Protected
These bonds carry limited recourse provisions. This guarantees that New Hampshire’s taxpayer dollars cannot be tapped for bondholder repayment under any scenario.
Moody’s verified this protection in its assessment, explicitly stating 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, comparable to instances where states facilitate bonds for private sector initiatives. The state’s creditworthiness does not support this offering.
The Bond’s Development Process
The New Hampshire BFA greenlit this initiative in November 2025. During that announcement, the authority proclaimed it would become the world’s first state to launch such a financial instrument.
Asset manager Wave Digital Assets architected the program alongside bond expert Rosemawr Management. BitGo Trust Company handles custodial responsibilities for the bitcoin collateral.
The bond program launches with a $100 million ceiling. It enables corporations to secure loans against overcollateralized bitcoin positions.
Revenue generated from the program will capitalize a Bitcoin Economic Development Fund. According to the BFA, this fund will promote commercial expansion and financial innovation throughout New Hampshire.
This transaction introduces bitcoin to a finance sector where it has maintained minimal presence — rated debt instruments issued via governmental channels.
On Monday, the Labor Department unveiled a proposed regulation, stemming from a President Trump executive order, designed to broaden digital asset accessibility within retirement investment accounts.
