Bitcoin Suisse issues tokenized bond on Obligate to expand lending business
The investment-grade level issuance leverages advanced collateral management and USDC for settlement to support Bitcoin Suisse’s growth efforts.
Zurich, Switzerland — June 11, 2024 — Obligate, the leading on-chain capital markets platform, today announced the completion of the first tokenized bond issuance for Bitcoin Suisse, the leading Swiss crypto-financial services provider. This issuance aims to accelerate Bitcoin Suisse’s growth efforts in its lending business. Bitcoin Suisse recently surpassed CHF 5 billion in Assets under Custody, solidifying its position as Switzerland’s largest crypto custodian and trusted gateway to invest in digital assets. Bitcoin Suisse was one of the first institutions in Switzerland to offer crypto asset collateralized loans to its clients to increase their capital efficiency.
The transaction further validates Obligate’s strategy of offering institutional borrowers access to new capital sources, highlighting the rapid adoption of tokenized real-world assets within the wider FinTech ecosystem.
The investment-grade level bond is overcollateralized, providing an additional layer of security for investors. The issuance features advanced collateral management with conservative Loan-to-Value (LTV) ratios. Utilizing USDC as the settlement currency, this issuance was done via atomic settlement of the issued bonds against Circle’s stablecoin, enhancing transaction efficiency.
Stephan D. Meyer, Co-Founder and CLO at Obligate, commented: “By facilitating this tokenized bond issuance, we empower institutional-grade brokers and custodians like Bitcoin Suisse, who custody billions in assets, to leverage our advanced blockchain technology, robust legal framework, and collateralization capabilities.”
Simultaneously, qualified investors with Obligate seized the opportunity to directly invest in this private debt issuance. This underscores the trust in Obligate and highlights the solid balance sheet of Bitcoin Suisse.
”It is a significant step toward integrating traditional financial mechanisms with innovative digital solutions, setting a new standard for asset-backed lending in the digital economy,” Stephan added.
Sandro Huwyler, Head Treasury of Bitcoin Suisse, said: “Bitcoin Suisse remains committed to bridge the gap between traditional finance and decentralized technology. The milestone of issuing this tokenized bond reinforces our pioneering role in the industry and reflects the trust investors place in Bitcoin Suisse, its financials and its business model. The additional capital generated through the issuance of the new bond will bolster the expansion and growth effort of our lending business and help us meet the growing demand of our clients.”
About Bitcoin Suisse
Founded in 2013, Bitcoin Suisse is the Swiss crypto-finance and technology pioneer. As an enabler for the crypto and blockchain ecosystem in Switzerland, Bitcoin Suisse has been a driving force in the development of the ‘Crypto Valley’ and the ‘Crypto Nation Switzerland’. The crypto-financial services provider offers brokerage, custody, lending, staking, and other crypto-related services for private and institutional clients. As a member of the self-regulatory organization Financial Services Standards Association (VQF), Bitcoin Suisse is a financial intermediary subject to Swiss AML/CFT regulations. Bitcoin Suisse consists of several companies under the parent company BTCS Holding Ltd. The company is headquartered in Zug and has built a team of over 200 highly qualified experts in Switzerland and Europe. | www.bitcoinsuisse.com
About Obligate
Obligate AG is a member of VQF, a Swiss FINMA regulated AML SRO, and a financial intermediary. Standing at the forefront of institutional adoption in on-chain capital markets, Obligate is providing a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. The platform’s unique architecture caters to the complex needs of institutional investors whilst lowering the barriers of entry for issuers by providing efficient access to multilateral financing. Featuring their proprietary eNotesTM, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards. | www.obligate.com
