Swiss cryptocurrency custodian Bitcoin Suisse has launched a tokenized bond through Obligate, enhancing its efforts to expand its lending operations. Bitcoin Suisse, the largest custodian in Switzerland with assets exceeding $5.5 billion, has procured fresh capital by issuing this investment-grade bond on the Obligate platform, which operates in the decentralized capital markets.
The bond, which is overcollateralized, utilizes Circle’s USD Coin (USDC) stablecoin for settlement, employing atomic settlement principles for efficiency. Sandro Huwyler, Bitcoin Suisse’s treasury head, expressed confidence that the capital raised from this bond issuance will significantly support their lending business expansion and meet increasing client demands.
Stephan D. Meyer, co-founder of Obligate, highlighted the platform’s mission to empower major institutional brokers and custodians like Bitcoin Suisse. He emphasized Obligate’s advanced blockchain technology, robust legal framework, and effective collateralization methods as crucial tools for these entities.
Established in 2013 by Niklas Nikolajsen, Bitcoin Suisse primarily offers secure cold storage solutions for institutional investors. In 2020, the Zug-based firm secured CHF 45 million (over $50 million) in a Series A funding round from various Swiss and international investors, including notable figures like Roger Studer and Tobias Reichmuth.
For further reading, explore the recent developments involving the Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland in their collaborative Central Bank Digital Currency (CBDC) project.