History in the Making: Moody’s Rates First Bitcoin-Backed Revenue Bonds

Moody’s Ratings has assigned a Ba2 provisional rating to a new Bitcoin-backed bond structure in the U.S. The deal, worth up to $100 million, is tied to the Waverose Finance project and issued through a New Hampshire state authority. It marks another step in bringing crypto into traditional credit markets.

How the structure actually works

As it happens, the bonds are issued by the Business Finance Authority of the State of New Hampshire and backed by a loan secured with Bitcoin, according to the report that the credit ratings division of Moody’s Corporation published on March 31.

Investors are repaid from the value of that collateral and not from taxpayer funds. If Bitcoin drops too much, the structure forces a liquidation. The initial collateral ratio is set at 1.6 times the loan value. If it falls to 1.4, the bonds must be redeemed.

Custody is handled by BitGo, whereas a separate agent is responsible for selling Bitcoin if needed to meet payments. One tranche may also benefit if Bitcoin’s price rises, adding upside on top of fixed returns.

Why this matters for crypto markets

This is not just another crypto product. It shows Bitcoin being used inside a traditional bond framework with rating oversight.

Credit ratings, structured safeguards, and defined risk models make these products easier to understand and potentially easier to adopt for institutions.

At the same time, the rating reflects Bitcoin’s volatility and reliance on market liquidity. If conditions worsen, the structure depends on being able to sell collateral quickly.

Still, this is part of a larger shift. Crypto is being pulled into the system, piece by piece, with structures that look familiar to traditional investors. That process tends to move slowly, but once it starts, it usually doesn’t reverse.