Pioneering Move in Blockchain Finance
Bitcoin Suisse, one of the foremost Swiss crypto-financial service providers, has issued its very first tokenized bond on Obligate. This on-chain capital market platform functions on Polygon. This marks quite an essential step regarding the infusion of blockchain technology into traditional financial instruments.
How It Helps the Company Grow
With over CHF 5 billion ($5.5 billion) in custody, Bitcoin Suisse plans to use the money from issuing this tokenized bond to build up its Swiss domestic lending business. It is part of the company’s significant commitment to utilizing new technologies to upgrade financial services.
Tokenized Bonds Explained
Tokenized bonds are a revolutionary digital re-enactment of bonds. They are created by using blockchain technology. This makes the issuance and trading of bonds more transparent, efficient, and secure. Obligate provides the platform through which these on-chain bonds will be issued for companies raising funds from investors within a regulated DeFi ecosystem.
USDC Stablecoin as the Settlement Currency
The obligation of the offer for Bitcoin Suisse’s tokenized bond issuance was settled using the USDC stablecoin. This has been possible with the atomic settlement of the issued bonds against Circle’s stablecoin, enabling the smooth and frictionless processing of the transactions.
Key People Quotes
Sandro Huwyler, Head Treasury of Bitcoin Suisse, said, “The additional capital raised through the issuance of the new bond will strengthen the expansion and growth effort of our lending business”.
Stephan D. Meyer, Co-founder and Chief Legal Officer of Obligate, said, “By enabling this tokenized bond issuance, we enable institutional-grade brokers and custodians like Bitcoin Suisse, who hold billions in assets, to benefit from our leading blockchain technology, strong legal framework, and collateralization capabilities”.
About Bitcoin Suisse and Obligate
Headquartered in Zug and founded in 2013, Bitcoin Suisse is considered one of the pioneers in the region to offer the potential of crypto asset collateralized loans to its clients. This novel issuance is for capital efficiency increase. Obligate, with investors like Circle, Blockchange Ventures, Earlybird Venture Capital, and the SIX group, provides a strong base for issuance of on-chain bonds and hence brings traditional finance into a decentralized world.
