Key Highlights
- New Hampshire Business Finance Authority introduces the nation’s first rated municipal bond backed by bitcoin
- Moody’s granted a provisional Ba2 rating, categorizing it as speculative grade
- BitGo holds bitcoin collateral with 1.6x overcollateralization requirements
- Taxpayer dollars remain protected; New Hampshire functions solely as a conduit issuer
- Wave Digital Assets and Rosemawr Management structured the $100 million bond
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.
Moody’s Ratings delivered a provisional Ba2 rating for the bond on Tuesday. This designation falls within speculative-grade classification, sitting two levels beneath investment grade, which signals notable credit exposure.
The provisional status reflects Moody’s ongoing review of final legal documentation before delivering a conclusive assessment. An official launch timeline remains unannounced.
Bitcoin custody through BitGo Trust Company provides the backing for this bond. When payments come due, bitcoin holdings face liquidation to satisfy both interest obligations and principal repayment.
The arrangement mandates 1.6x overcollateralization. Automated triggers enforce liquidation procedures when the loan-to-value ratio breaches specific thresholds.
Moody’s applied a 72% advance rate alongside brief liquidation timeframes when assessing potential downside scenarios. The rating agency identified bitcoin’s price fluctuations as the primary driver behind the Ba2 classification.
S&P Global observed earlier this month that bitcoin’s volatility has demonstrated a downward trend over time, though it continues exceeding levels seen in gold and the Nasdaq-100.
Taxpayer Funds Remain Protected
These bonds feature limited recourse provisions. New Hampshire’s public treasury faces zero liability for repaying bondholders 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 arrangements where states facilitate bonds for private ventures. State creditworthiness provides no support for this offering.
Structure and Development
The New Hampshire BFA greenlit this initiative during November 2025. During approval, the authority proclaimed it would mark the first state globally to launch such a bond.
Asset manager Wave Digital Assets collaborated with bond specialist Rosemawr Management to architect the program. BitGo Trust Company handles custodial responsibilities for the bitcoin collateral.
The bond program launches with $100 million capacity. Businesses can access loans by pledging overcollateralized bitcoin positions.
Revenue generated through program fees will capitalize a Bitcoin Economic Development Fund. The BFA indicates this fund will accelerate business expansion and financial innovation throughout New Hampshire.
This transaction positions bitcoin within a financial sector where it has maintained minimal presence — rated debt instruments flowing through public infrastructure.
On Monday, the Labor Department unveiled a proposed regulation, stemming from an executive directive by President Trump, designed to broaden digital asset accessibility within retirement accounts.
