Key Takeaways
- New Hampshire’s Business Finance Authority introduces the United States’ first bitcoin-collateralized municipal bond with an official credit rating
- The bond received a provisional Ba2 rating from Moody’s — categorized as speculative grade, sitting below investment-grade status
- BitGo-custodied Bitcoin functions as collateral, featuring a 1.6x overcollateralization ratio
- Zero taxpayer money is exposed to risk; New Hampshire functions solely as a conduit issuer
- The initial bond offering totals $100 million, developed through collaboration between Wave Digital Assets and Rosemawr Management
The Business Finance Authority of New Hampshire (BFA) is moving forward with plans to launch what appears to be the nation’s first credit-rated municipal bond backed by bitcoin collateral.
On Tuesday, Moody’s Ratings issued a provisional Ba2 rating for the bond. This classification puts it in speculative-grade category, positioned two levels beneath investment-grade securities, indicating considerable credit exposure.
The provisional nature of this rating stems from Moody’s awaiting final legal documentation before delivering its complete assessment. An official issuance date has not been announced.
Bitcoin secured through BitGo Trust Company acts as the underlying collateral. Should payment obligations arise, the bitcoin assets will be sold to satisfy interest and principal requirements.
The framework incorporates a 1.6x overcollateralization mandate. Additionally, automatic liquidation mechanisms activate if the loan-to-value ratio declines beyond specified thresholds.
Moody’s applied a 72% advance rate combined with abbreviated liquidation timeframes when assessing potential downside scenarios. The ratings 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 progressively, it remains significantly elevated compared to gold and the Nasdaq-100 index.
Taxpayer Funds Remain Protected
These bonds carry limited recourse provisions. This structure ensures that New Hampshire’s public treasury cannot be tapped to reimburse bondholders under any scenario.
Moody’s verified this arrangement in their analysis, 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 bond issuance for private ventures. The state’s creditworthiness does not underwrite this offering.
Development and Structure of the Bond
The New Hampshire BFA greenlit this initiative in November 2025. During that announcement, the authority declared it would mark the first state globally to launch such an instrument.
Asset management firm Wave Digital Assets architected the program alongside bond specialist Rosemawr Management. BitGo Trust Company was selected as custodian for the bitcoin collateral.
The bond program launches with a $100 million capacity. It enables corporations to secure financing against overcollateralized bitcoin positions.
Revenue generated through program fees will capitalize a Bitcoin Economic Development Fund. According to the BFA, this fund will catalyze business expansion and financial innovation throughout New Hampshire.
This transaction introduces bitcoin into a financial sector where it has maintained minimal presence — rated debt instruments distributed through governmental channels.
On Monday, the Labor Department unveiled a proposed regulation, stemming from an executive order issued by President Trump, designed to broaden digital asset accessibility within retirement investment accounts.
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