Key Takeaways
- New Hampshire’s Business Finance Authority plans to launch America’s inaugural rated municipal bond backed by bitcoin
- The bond received a provisional Ba2 rating from Moody’s — categorized as speculative grade and below investment quality
- Bitcoin stored with BitGo acts as the underlying collateral, maintained at 1.6x overcollateralization levels
- Taxpayer money remains completely protected; New Hampshire functions solely as a conduit issuer
- Wave Digital Assets and Rosemawr Management structured the $100 million bond program
New Hampshire’s Business Finance Authority (BFA) stands ready to launch what appears to be the nation’s first rated municipal bond collateralized by bitcoin.
🚨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 designation puts it within speculative-grade classification, sitting two levels beneath investment grade, which indicates notable credit exposure.
The provisional nature of this rating stems from Moody’s awaiting final legal documentation before releasing its complete assessment. No official issuance date has been announced yet.
[[LINK_START_2]]Bitcoin[[LINK_END_2]] maintained by BitGo Trust Company functions as the bond’s collateral. Should payments become necessary, the digital currency will be sold to satisfy interest obligations and principal repayments.
The framework mandates 1.6x overcollateralization. Additionally, automatic liquidation mechanisms activate when the loan-to-value metric falls below specified thresholds.
When evaluating potential downside scenarios, Moody’s applied a 72% advance rate alongside brief liquidation timeframes. The rating agency identified bitcoin’s price fluctuations as the primary driver behind the Ba2 classification.
Earlier this month, S&P Global observed that while bitcoin’s volatility has decreased over time, it remains significantly higher than 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 compensate bondholders regardless of circumstances.
Moody’s verified this protection 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 serves merely as a conduit issuer in this arrangement, comparable to how states occasionally facilitate bonds for private ventures. The state’s creditworthiness does not support this transaction.
The Bond’s Development Process
New Hampshire’s BFA greenlit this initiative in November 2025. During that approval, the authority proclaimed it would become the world’s first state to issue such an instrument.
Asset management firm Wave Digital Assets created the program alongside bond expertise from Rosemawr Management. BitGo Trust Company handles custodial responsibilities for the Bitcoin collateral.
The initial bond program begins with $100 million. It enables businesses to obtain loans against their overcollateralized bitcoin positions.
Revenue generated through the program will capitalize a [[LINK_START_3]]Bitcoin[[LINK_END_3]] Economic Development Fund. According to the BFA, these resources will advance business expansion and financial innovation throughout New Hampshire.
This arrangement introduces bitcoin into a financial sector where it has seldom operated — rated debt instruments distributed through governmental channels.
Earlier this week, the Labor Department unveiled a proposed regulation, pursuant to a presidential executive order from President Trump, designed to broaden digital asset accessibility within retirement investment accounts.
