Tokenized Bond Issued by Swiss Crypto Custodian Bitcoin Suisse to Drive Growth in Lending Business

Swiss cryptocurrency custodian Bitcoin Suisse has recently launched a tokenized bond through Obligate, aiming to enhance its expansion endeavors within the lending sector.

Bitcoin Suisse, the leading crypto custodian in Switzerland managing assets exceeding $5.5 billion, has raised fresh capital by introducing a tokenized bond on Obligate, a decentralized capital markets platform.

As per a communication received by crypto.news, the bond is of investment-grade quality and is overcollateralized, employing Circle's USD Coin (USDC) stablecoin for settlements. The bond issuance was facilitated through atomic settlement against the stablecoin.

Sandro Huwyler, the head of treasury at Bitcoin Suisse, highlighted that the additional capital acquired through the issuance of the new bond will fortify the company's lending business expansion efforts, catering to the escalating requirements of its customers.

Bitcoin Suisse's focus remains on bridging the traditional finance and decentralized technology realms. The successful issuance of this tokenized bond signifies the company's pioneering position in the industry and mirrors the confidence investors hold in Bitcoin Suisse's financial stability and business model.

Delving into the tokenization of the bond, Stephan D. Meyer, co-founder of Obligate, expressed the platform's ambition to support institutional-grade brokers and custodians such as Bitcoin Suisse, which safeguard billions in assets, by offering advanced blockchain technology, a sturdy legal framework, and collateralization capabilities.

Established in 2013 by Niklas Nikolajsen, Bitcoin Suisse provides crypto cold storage solutions tailored for institutional investors. In 2020, the Zug-based company amassed CHF 45 million (over $50 million) through a Series A funding round from a diverse group of Swiss and international investors, including notable figures like Roger Studer, the former head of investment banking at Bank Vontobel, and Swiss banker Tobias Reichmuth.