Swiss cryptocurrency custodian Bitcoin Suisse has recently made a strategic move to issue a tokenized bond through Obligate, an on-chain capital markets platform, in order to further expand its lending business. With over $5.5 billion in assets under custody, Bitcoin Suisse is Switzerland’s largest crypto custodian and the issuance of this investment-grade bond will provide the company with additional capital to support its growth efforts. The bond is overcollateralized and uses Circle’s USD Coin (USDC) stablecoin for settlement, with an atomic settlement process in place for the transaction.
Head of treasury at Bitcoin Suisse, Sandro Huwyler, expressed enthusiasm about the issuance of the tokenized bond, highlighting its significance in fueling the company’s expansion plans. Huwyler emphasized the importance of meeting the increasing demand from clients while also positioning Bitcoin Suisse as a frontrunner in bridging the gap between traditional finance and decentralized technology. This move not only reinforces the company’s leadership in the industry but also signifies the confidence investors have in its financials and business model.
Obligate co-founder, Stephan D. Meyer, shared his perspective on the tokenization of the bond, emphasizing the platform’s commitment to enabling institutions like Bitcoin Suisse to leverage blockchain technology and other capabilities. By providing a robust legal framework and collateralization capabilities, Obligate aims to empower institutional-grade brokers and custodians to make the most of advanced financial tools available in the crypto space. This partnership highlights the synergy between Bitcoin Suisse’s expertise in crypto custody and Obligate’s innovative blockchain solutions.
Bitcoin Suisse was founded in 2013 by Niklas Nikolajsen and has since established itself as a key player in the cryptocurrency industry, particularly in offering cold storage services for institutional investors. In a significant milestone in 2020, the company successfully raised CHF 45 million (over $50 million) in a Series A funding round, attracting investment from Swiss and international sources. Notable investors included Roger Studer, a former executive at Bank Vontobel, and Swiss banker Tobias Reichmuth, underscoring the confidence in Bitcoin Suisse’s vision and growth potential.
The issuance of the tokenized bond by Bitcoin Suisse represents a strategic move to tap into new funding sources and accelerate the company’s lending business. By leveraging Obligate’s blockchain technology and establishing a collateralized bond using USDC stablecoin, Bitcoin Suisse is paving the way for more institutional-grade players to participate in the decentralized finance ecosystem. This development underscores the growing convergence between traditional finance and cryptocurrencies, with Bitcoin Suisse at the forefront of driving innovation and expanding its market presence.
As Bitcoin Suisse continues to strengthen its position as a leading crypto custodian, the issuance of the tokenized bond underscores the company’s commitment to evolve with the changing landscape of financial services. By embracing new technologies and forming strategic partnerships, Bitcoin Suisse is well-positioned to capitalize on the growing demand for digital assets and decentralized financial solutions. With a strong track record and a clear vision for the future, Bitcoin Suisse is set to play a pivotal role in shaping the future of the cryptocurrency industry and redefining the boundaries of traditional finance.
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