Bitcoin Suisse Launches Tokenized Bond on Obligate
By Tanzeel Akhtar
Updated: June 11, 2024, 09:00 EDT
| 1 min read
Obligate, a cutting-edge capital markets platform operating on the Polygon blockchain, has announced that the renowned Swiss crypto-financial services provider Bitcoin Suisse has successfully issued its inaugural tokenized bond on the platform.
Bitcoin Suisse, with assets under custody totaling CHF 5 billion ($5.5 billion), disclosed that the proceeds from the tokenized bond issuance will be directed towards fortifying its domestic lending operations.
Tokenized bonds entail the digitization of bond assets through blockchain technology.
Obligate facilitates the issuance of on-chain bonds by companies and enables them to secure funding from investors within a regulated DeFi setting.
USDC Stablecoin Employed for Settlement
Both entities utilized the stablecoin USDC as the settlement currency. The bond issuance was executed through the atomic settlement of the issued bonds against Circle’s stablecoin.
“The infusion of additional capital from the issuance of the new bond will provide a significant boost to the expansion and development initiatives of our lending business,” stated Sandro Huwyler, head of treasury at Bitcoin Suisse.
Stephan D. Meyer, co-founder and chief legal officer at Obligate, emphasized, “By supporting this tokenized bond issuance, we empower established brokers and custodians like Bitcoin Suisse, which safeguard billions in assets, to leverage our sophisticated blockchain technology, robust legal framework, and collateralization capabilities.”
Bitcoin Suisse, headquartered in Zug and established in 2013, asserts itself as one of the pioneering institutions in Switzerland offering crypto asset collateralized loans to clients seeking to enhance their capital.
Investors in Obligate include Circle, Blockchange Ventures, Earlybird Venture Capital, and the SIX group.
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