Key Takeaways
- New Hampshire’s Business Finance Authority is launching America’s inaugural rated bitcoin-collateralized municipal bond
- The bond received a provisional Ba2 rating from Moody’s — classified as speculative grade, falling short of investment-grade status
- BitGo custody holds the bitcoin collateral with a 1.6x overcollateralization requirement built into the structure
- Taxpayer dollars face zero exposure; the state functions solely as a conduit for the issuance
- The initial offering totals $100 million, structured by Wave Digital Assets alongside Rosemawr Management
The New Hampshire Business Finance Authority (BFA) is on the verge of launching what appears to be America’s inaugural rated municipal bond backed by bitcoin 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 offering. This classification lands it in speculative territory, sitting two levels beneath investment-grade status, which indicates notable credit exposure.
The provisional nature of this rating stems from Moody’s ongoing review of final documentation before delivering a definitive assessment. No concrete issuance date has been announced.
Bitcoin stored with BitGo Trust Company provides the underlying collateral. Should payment obligations arise, the digital currency will be converted to cash to satisfy interest and principal requirements.
The framework mandates 1.6x overcollateralization levels. Additional safeguards include automatic liquidation mechanisms activated when loan-to-value ratios breach predetermined thresholds.
In assessing potential downside scenarios, Moody’s applied a 72% advance rate combined with compressed liquidation timeframes. The agency identified bitcoin’s price fluctuations as the primary driver behind its Ba2 designation.
Earlier this month, S&P Global observed that while bitcoin’s volatility has diminished over time, it remains significantly elevated compared to traditional assets like gold and the Nasdaq-100 index.
Taxpayer Funds Completely Shielded
These bonds carry limited recourse provisions. This structure explicitly prevents any use of New Hampshire’s public treasury to satisfy bondholder claims regardless of circumstances.
Moody’s explicitly confirmed 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. The state’s creditworthiness does not underwrite this issuance.
The Bond’s Development Process
The New Hampshire BFA greenlit this initiative in November 2025. During that approval, the authority proclaimed it would become the world’s first state-level entity to launch such an instrument.
Asset management firm Wave Digital Assets developed the program in collaboration with fixed-income specialist Rosemawr Management. BitGo Trust Company handles custody responsibilities for the bitcoin reserves.
The inaugural program encompasses $100 million in capacity. It enables corporations to secure financing against heavily overcollateralized bitcoin positions.
Revenue generated through program fees will capitalize a Bitcoin Economic Development Fund. According to the BFA, these resources will catalyze business expansion and financial technology innovation throughout New Hampshire.
This transaction positions bitcoin within a financial sector where it has maintained minimal presence — rated securities issued via governmental channels.
Earlier this week, the Labor Department unveiled a proposed regulation, stemming from a presidential directive by President Trump, designed to broaden digital asset accessibility within retirement investment vehicles.
