The first municipal agreement of its kind with the help of bitcoin is nearing release after receiving a minor rating from Moody’s Investors Service, which indicates a significant role in the exchange of digital assets and public finances.
The issuance of $ 100 million, which was made by the New Hampshire Business Finance Authority (BFA), received a rating of Ba2 – two notches below the financial grade, according to Bloomberg. to announce.
Once completed, the deal would represent the first municipal bond backed by bitcoin collateral, opening up a new avenue for institutional capital to access the asset class through regulated markets.
Under the proposed system, the financing will be financed by the funds generated from the bitcoin collateral posted by the borrower. CleanSpark. Investors will also be upside down, with some payments tied to bitcoin price appreciation.
At the same time, the bottom protection is created in the contract. If the price of bitcoin falls below a predetermined level, the trust can be liquidated to repay the bondholders in full.
In short, bonds have no support from taxpayers.
“There is no public money of the State of New Hampshire or any political party that can be used to pay the money under the bonds,” Moody’s wrote in its report, emphasizing that the issuer does not have the authority to tax to solve any problem.
Key players behind the bitcoin consensus
Digital asset firm Wave Digital Assets will oversee the management of the project. management of management of management of management of management of management of management
The plan was approved by the BFA in November, 2025, and puts New Hampshire at the forefront of integrating bitcoin into the state’s financial markets.
Governor Kelly Ayotte supported the project at the time, pitching it as a way to attract revenue without putting taxpayers at risk.
“This is a new way to bring more opportunities to our state and position us as a leader in the digital economy,” Ayotte said.
Volatility remains a major risk
The Ba2 rating emphasizes the paradox at the heart of the product: combining one of the most volatile products with one of the safest.
Bitcoin has fell almost 50% from its October 2025 peak near $126,000, reflecting the risk associated with bond volatility. Over the same period, high-yield municipal bonds produced lower returns, reflecting the gap between the two groups.
However, critics argue that the system’s interoperability – and protection against withdrawals – could make bitcoin viable in the capital markets.
The deal is part of Wave and its partners’ efforts to create a bridge between the digital economy and traditional credit markets, allowing bitcoin to function as a collateral.
If successful, the release could set the template for future crypto-backed municipalities or credit companies, effectively creating a new class of hybrid products.
“This is not a one-time event – it’s opening up a whole new credit market,” Wave co-founder Les Borsai said when the plan was first unveiled.
Currently, the bond does not have a fixed pricing date. But it is a level in place, trying to combine bitcoin and money tapala is entering the concrete sector, which can test if the money culture is ready to underwrite the risk of crypto exchange yields and upside down contact.
