Bitcoin
Bitcoin Suisse issues tokenized bonds to compel raising new capital
Swiss crypto custodian Bitcoin Suisse has issued tokenized securities via Obligate to double down on growth efforts in the lending business.
Swiss BitcoinSwitzerland’s largest crypto custodian with over $5.5 billion in assets under custody has secured new capital by issuing a tokenized bond on Obligate, an on-chain capital markets platform.
According to a press release shared with crypto.news, the investment-grade bond is overcollateralized and uses Circle’s stablecoin USD Coin (USDC) as its settlement currency. The issuance was carried out via atomic settlement of securities against the stablecoin.
Bitcoin Suisse head of treasury Sandro Huwyler says the additional capital generated through the issuance of the new bond “will reinforce the effort to expand and grow our lending business and help us meet the growing demand of our customers.”
“Bitcoin Suisse remains committed to bridging the gap between traditional finance and decentralized technology. The milestone issuance of this tokenized security reinforces our pioneering role in the industry and reflects the confidence that investors place in Bitcoin Suisse, its finances and its business model.”
Sandro Huwyler
Commenting on the tokenization of securities, Obligate co-founder Stephan D. Meyer says the platform wants to “empower institutional-grade brokers and custodians like Bitcoin Suisse, who custody billions in assets, to leverage our advanced blockchain technology, robust legal framework and guarantee capabilities.”
Founded in 2013 by Niklas Nikolajsen, Bitcoin Suisse offers crypto cold storage services to institutional investors. In 2020, the Zug-based company created CHF 45 million (over US$50 million) in a Series A funding round from a range of Swiss and international investors, including Roger Studer, former head of investment banking at Bank Vontobel, and Swiss banker Tobias Reichmuth.