New Hampshire Authority to Issue First Bitcoin-Backed Public Bond
The New Hampshire Business Finance Authority is preparing to issue a landmark bitcoin-backed bond, marking a major step in bringing cryptocurrency into traditional public finance markets.
Moody’s has assigned a provisional Ba2 rating, two notches below investment grade. The bonds will be secured with bitcoin BTC $68,874.54 held by custodian BitGo, which can be liquidated to cover interest and principal payments if needed.
“The Rated Bonds will be collateralized by a loan… backed by Bitcoin, a digital currency,” Moody’s said. Unlike conventional bonds, repayment relies on bitcoin rather than cash flows, with protections including 1.6x overcollateralization and automatic liquidation triggers if the loan-to-value ratio falls.
The bonds are limited recourse, meaning no public funds are at risk. The structure functions like conduit finance, with the state authority acting as a pass-through issuer rather than providing a guarantee. Moody’s said the rating reflects bitcoin’s volatility and the deal’s structure, signaling that credit agencies are beginning to assess crypto-backed debt.
The issuance comes as institutions explore new applications for bitcoin beyond trading and treasury holdings. Following a Trump-era executive order, the Labor Department recently proposed rules to expand access to digital assets in retirement accounts, highlighting crypto’s growing mainstream integration.
