Bitcoin Suisse, a prominent Swiss crypto-financial services provider managing $5.57 billion in assets, has announced the issuance of a tokenized bond product on the Polygon blockchain network.
This groundbreaking bond offering, unveiled on June 11, is considered investment-grade quality and is overcollateralized, ensuring that the value of the assets backing the bond exceeds that of the loan. Transactions associated with this bond are settled using USDC, the second-largest stablecoin by market cap.
The bond issuance is the result of a strategic partnership between Bitcoin Suisse and Obligate, an on-chain capital markets platform renowned for facilitating blockchain-based bond issuances for mainstream companies. Qualified investors accessed the private debt issuance directly through Obligate, underscoring the increasing convergence of traditional finance with blockchain technology.
According to Obligate, the collaboration with Bitcoin Suisse not only provides expedited and cost-effective access to capital for the financial services provider but also creates a novel tokenized investment opportunity for Obligate’s accredited investors.
Sandro Huwyler, Bitcoin Suisse’s head of treasury, emphasized the firm’s dedication to bridging the gap between traditional finance and decentralized technology. “The milestone of issuing this tokenized bond reinforces our pioneering role in the industry,” Huwyler said.
Bitcoin Suisse has been at the forefront of financial innovation in Switzerland, offering loans collateralized by crypto assets to clients. The proceeds from this tokenized bond issuance will be utilized by Bitcoin Suisse to bolster the expansion of its domestic lending business, further solidifying its position as a leader in the crypto financial services sector.