Bitcoin enters the public bond market as Moody’s gives a first-of-its-kind crypto deal a rating
CoinDesk
New Hampshire is issuing a bitcoin-backed bond with a Ba2 rating from Moody’s, marking a milestone for crypto in public finance.Summary
The New Hampshire Business Finance Authority is issuing a unique bitcoin-backed bond, which has received a provisional Ba2 rating from Moody’s Ratings. This deal represents a significant step in integrating cryptocurrency into traditional public finance, as the bonds are collateralized by bitcoin held in custody by BitGo rather than traditional business cash flows. To mitigate risks associated with bitcoin's volatility, the structure includes 1.6x overcollateralization and specific liquidation triggers. Importantly, the bonds are limited recourse, meaning no public funds from the State of New Hampshire are at risk, positioning the issuance as a conduit for testing crypto-backed instruments within the regulated debt market.
(Source：CoinDesk)