Moody's Assigns Provisional Rating to New Hampshire Bitcoin-Backed Bond

Moody's Investors Service has made a significant move in the world of cryptocurrency-backed bonds, assigning a provisional Ba2 rating to New Hampshire's $100 million Bitcoin-backed municipal bond.

The rating reflects substantial credit risk and places the bond in the speculative grade category. However, it is essential to note that the rating remains subject to final legal documentation, which is typically a requirement for Moody's to issue a final judgment.

The proposed bond structure relies on overcollateralized Bitcoin, with borrowers posting around 160% of the bond's value. BitGo will serve as the third-party custodian, alongside a state entity that oversees the bond without taking on repayment risk.