Moody’s has issued its first credit rating for a Bitcoin-backed bond, assigning a provisional Ba2 rating to a $100 million deal linked to New Hampshire.
The bonds, issued through the state’s Business Finance Authority, are backed entirely by Bitcoin held in custody, with no public funds exposed to risk.
“The advance rate reflects an assessment of Bitcoin's historical volatility and liquidity,”
Moody’s said in its release.
The Ba2 rating places the bonds in speculative-grade territory, reflecting Bitcoin’s price volatility despite the structured safeguards built into the deal.
Repayment will depend solely on the liquidation of Bitcoin collateral held by BitGo, with mechanisms such as over collateralisation and forced liquidation thresholds designed to protect investors.
The transaction follows growing momentum in Bitcoin-linked debt markets, including a $188 million asset-backed deal by crypto lender Ledn that previously secured a higher BBB- rating.
Moody’s move signals increasing institutional engagement with digital assets, as traditional finance firms explore ways to integrate Bitcoin into mainstream credit markets.
At the time of reporting, Bitcoin price was $66,602.35.