New Hampshire's ₱6.06 billion ($100 million) Bitcoin Bond Gets Ba2 Rating from Moody's
New Hampshire's ₱6.06 billion ($100 million) Bitcoin-backed municipal bond received a Ba2 rating from Moody's on Tuesday, marking the first crypto-collateralized issuance in the U.S. municipal bond market. The rating reflects protection against roughly 28% Bitcoin price volatility.
Key Takeaway
A Ba2 rating for Bitcoin collateral signals growing institutional acceptance of crypto in traditional finance.
Moody's Investors Service assigned a provisional Ba2 rating to New Hampshire's Bitcoin-backed municipal bond on Tuesday.
Moody's used a 72.06% advance rate for the Bitcoin collateral held by BitGo Trust Company, meaning bondholders would be protected against roughly 28% volatility in Bitcoin's price. The rating agency assumed a two-day exposure period for liquidating collateral if needed. The New Hampshire Business Finance Authority approved the ₱6.06 billion ($100 million) bond structure in November 2025, making it the first time crypto collateral has entered the U.S. municipal bond market.
Moody's said the advance rate reflects Bitcoin's historical volatility and liquidity profile. S&P Global noted that Bitcoin volatility has declined but remains higher than both the Nasdaq-100 and gold, driven by factors specific to the crypto ecosystem. Wave Digital Assets designed the project structure with bond specialist Rosemawr Management.
Governor Kelly Ayotte signed New Hampshire's Strategic Bitcoin Reserve bill into law in May 2025, creating the legal framework for state-chartered institutions to hold Bitcoin as reserves. The bond still requires final approval from Ayotte and the state's Executive Council before issuance. Fees from the bond will support New Hampshire's Bitcoin Economic Development Fund. BitGo Trust Company will serve as custodian for the Bitcoin collateral backing the issuance.
This article was written based on reporting from Res.
