Moody’s Ratings has assigned a provisional Ba2 credit rating to a pair of Bitcoin-backed revenue bonds set to be issued through the Business Finance Authority of the State of New Hampshire. The firm describes this as the first instance of a major credit agency rating a bond directly collateralized by Bitcoin. The bonds are issued under the Waverose Finance Project and carry a combined face value of up to $100 million, with a maturity date of 2029.
A credit rating functions similarly to a credit score for an individual borrower, providing an independent assessment of how likely a debt is to be repaid. The Ba2 rating places these bonds two notches below investment grade, putting them in speculative territory. Nevertheless, the assignment itself is considered a significant milestone in the intersection of traditional finance and digital assets.
The bonds are structured as limited-recourse instruments, meaning no New Hampshire public funds are at risk. The state’s Business Finance Authority is serving solely as a conduit issuer, and repayment depends entirely on the liquidation of Bitcoin held in custody by BitGo Bank & Trust, according to a Moody’s press release. This structure insulates state finances from any potential losses tied to Bitcoin’s price movements.
Moody’s applied a 72.06% advance rate and a two-day exposure period consistent with a Ba2 rating for Bitcoin collateral. The agency noted that the advance rate reflects an assessment of Bitcoin’s historical volatility and liquidity. Initial overcollateralization is set at 1.60x, with a loan-to-value trigger at 1.40x that would force mandatory redemption if breached, meaning liquidation would occur if Bitcoin’s value falls to just 1.4 times the value of the outstanding loans.
The rating arrives amid growing momentum for rated Bitcoin-linked debt instruments. In late 2025, crypto lender Ledn received a BBB- rating from S&P Global on a $188 million asset-backed security pooling Bitcoin-backed loans, which was the highest rating achieved by a crypto firm at that time. That rating stood five intermediate grades above the B- ratings assigned to DeFi lender Sky and Michael Saylor‘s Strategy the same year.
Ledn’s deal encountered difficulties in February when a sharp Bitcoin price decline triggered liquidations of roughly a quarter of the underlying loan pool. The New Hampshire bonds have not yet been priced, and Moody’s indicated that a pre-sale report would be made available in the near term. The outcome of that pricing will be closely watched given the recent turbulence in Bitcoin-backed lending markets.
Moody’s has shown a broader interest in digital assets for some time. The firm tested on-chain ratings with Solana in June 2025, signaling an ongoing effort to extend its analytical frameworks into the crypto space. Rajeev Bamra, head of strategy for digital economy at Moody’s Ratings, stated at the time that the firm continues to embrace innovation in finance and actively explores new avenues for the digital finance ecosystem to access its credit assessments.
Originally reported by Decrypt.
