Cryptocurrencies
The US will issue the first bond backed by bitcoin
DREAMSTIME
Investors return to fixed income
The supermarket of available digital assets
Moody's has given this debt a credit rating of 'Ba2' with speculative grade
Digital assets are moving towards their integration into traditional public finance. The Business Finance Authority of New Hampshire, USA (BFA, for its initials in English), an organization aimed at boosting the state's economy, will issue the world's first bond backed by bitcoins with a Moody's credit rating.
The structure of this issuance is based on the main cryptocurrency, rather than on a company's cash flow, according to CoinDesk (a reference portal for the digital assets market).
Holders of these bonds will receive their repayments through the liquidation of bitcoin that BitGo (a crypto asset infrastructure company) holds in custody. These bitcoins will be sold if necessary to cover interest payments.
The agency has rated this issuance a note of Ba2, two notches below investment grade. This rating places these bonds in the speculative grade category. Moody's indicates that its rating reflects "the risks associated with the collateral, structure, and operation of the transaction," including the volatility of bitcoin.
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The US will issue the first bond backed by bitcoin
DREAMSTIME
Investors return to fixed income
The supermarket of available digital assets
Moody's has given this debt a credit rating of 'Ba2' with speculative grade
Digital assets are moving towards their integration into traditional public finance. The Business Finance Authority of New Hampshire, USA (BFA, for its initials in English), an organization aimed at boosting the state's economy, will issue the world's first bond backed by bitcoins with a Moody's credit rating.
The structure of this issuance is based on the main cryptocurrency, rather than on a company's cash flow, according to CoinDesk (a reference portal for the digital assets market).
Holders of these bonds will receive their repayments through the liquidation of bitcoin that BitGo (a crypto asset infrastructure company) holds in custody. These bitcoins will be sold if necessary to cover interest payments.
The agency has rated this issuance a note of Ba2, two notches below investment grade. This rating places these bonds in the speculative grade category. Moody's indicates that its rating reflects "the risks associated with the collateral, structure, and operation of the transaction," including the volatility of bitcoin.
#USJoblessClaimsNearTwo-YearLow #Squar2earn #Write2Earn $BTC