The New Hampshire Business Finance Authority, a public entity in the United States, announced plans to issue bonds backed by Bitcoin (BTC). The international credit rating agency Moody’s assigned a “Ba2” rating to the issuance, placing it in the speculative-grade category.
These bonds are structured to be repaid solely from the performance of the underlying Bitcoin collateral rather than public funds. Moody’s stated that it evaluated the collateral structure, operational risks, and service providers involved in the process. This setup makes returns fully dependent on digital asset performance.
BitGo to Secure the Collateral Crypto custody provider BitGo will play a key role in the technical operations. The company will securely store Bitcoin collateral and manage liquidation processes required for principal and interest payments. The collateral value will be monitored continuously, with forced repayment mechanisms triggered if thresholds are breached.
According to Moody’s, the initial collateral coverage ratio is set at 1.60x, while the loan-to-value trigger is set at 1.40x. This move is seen as part of broader efforts by U.S. public institutions to integrate digital assets into the financial system, potentially accelerating institutional adoption of Bitcoin-backed instruments.
