New Hampshire’s planned Bitcoin backed bond moved closer to market after Moody’s assigned it a provisional Ba2 rating on March 31.
The rating places the deal below investment grade and marks it as speculative. Moody’s said the main reason was Bitcoin volatility, which still remains higher than traditional assets.
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The bond project is tied to the New Hampshire Business Finance Authority. A provisional rating means Moody’s reviewed the main documents but still awaits final legal paperwork before issuing a final rating. In bond markets, that step matters because many institutional buyers rely on ratings when they assess credit risk.
Moody’s said its analysis used a 72.06% advance rate and a two day exposure period for the Bitcoin collateral.
It added: “The advance rate reflects an assessment of Bitcoin’s historical volatility and liquidity.” That language shows why the agency kept the Moody’s Ba2 rating below investment grade.
Bitcoin volatility drives the Bitcoin backed bond risk view
The core issue in the rating is simple. Bitcoin volatility still creates more risk for lenders and investors than many traditional forms of collateral. Because of that, Moody’s treated the New Hampshire Bitcoin bond as a higher risk structure.
At the same time, outside research shows Bitcoin’s volatility has eased over the years. In a March 2026 report, S&P Global said Bitcoin’s price swings are on a long term downward trend.
Still, it also said Bitcoin remains more volatile than many traditional assets. That leaves room for lower ratings even as the market becomes more mature.
So, the Bitcoin backed bond cleared an important step, but it did so with clear limits. The Moody’s Ba2 rating does not block the deal. However, it signals that investors are looking at a structure that still carries substantial credit risk.
New Hampshire Business Finance Authority approved the municipal bond plan in November
The New Hampshire Business Finance Authority approved the project in November 2025. At that stage, the authority said the state would move ahead with what it described as the world’s first municipal bond backed by Bitcoin. The initial size was set at $100 million.
The structure would allow companies to borrow against overcollateralized Bitcoin. In this setup, BitGo Trust Company serves as the custodian for the Bitcoin collateral.
The project was designed by Wave Digital Assets in partnership with Rosemawr Management.
The authority also said fees from the program would support a Bitcoin Economic Development Fund. According to the project description, that fund would help support business growth and financial development efforts across New Hampshire.
Bitcoin backed bond still awaits pricing and launch
The New Hampshire Bitcoin bond still does not have an official launch date. After a rating, the next usual step is pricing before the bond can enter the market. That means the deal has advanced, but it is not live yet.
For now, the main facts are clear. The municipal bond has a provisional Moody’s Ba2 rating. Bitcoin volatility was the main reason for the speculative grade.
The structure still targets a $100 million debut, with BitGo Trust Company, Wave Digital Assets, Rosemawr Management, and the New Hampshire Business Finance Authority all involved in the project.
Tatevik Avetisyan is an editor at Kriptoworld who covers emerging crypto trends, blockchain innovation, and altcoin developments. She is passionate about breaking down complex stories for a global audience and making digital finance more accessible.
📅 Published: April 1, 2026 • 🕓 Last updated: April 1, 2026
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