The New Hampshire Business Finance Authority is set to issue what appears to be the first rated bitcoin-backed bond of its kind, marking a step toward integrating crypto into traditional public finance.
The bonds received a provisional Ba2 rating from Moody’s Ratings, two notches below investment grade. They will be issued through the Business Finance Authority of the State of New Hampshire and are backed by bitcoin held as collateral, according to a press release.
“The Rated Bonds will be collateralized by a loan… backed by Bitcoin, a digital currency,” Moody’s said in its report.
The structure relies on bitcoin rather than cash flow from a business. Bondholders are repaid through the liquidation of BTC held in…
