Bitcoin-Backed Municipal Bond Clears Hurdle With Moody’s Rating

The riskiest asset class is converging with one of the safest in a first-of-its-kind financial product: A Bitcoin-backed municipal bond.

The New Hampshire Business Finance Authority’s plans for such a security — which they say is unprecedented — earned a Ba2 rating from Moody’s Investors Service on Tuesday. That’s two steps below the lowest level of investment grade.

A ratings action brings the novel idea one step closer to reality. The New Hampshire state conduit is aiming to sell $100 million of taxable, Bitcoin-backed bonds through two series, although there is no official date yet.

Bond payments will be ...