Bitcoin Suisse Launches Tokenized Bond on Obligate Platform

Bitcoin Suisse Launches Tokenized Bond on Obligate Platform


By Tanzeel Akhtar
Updated on:
June 11, 2024 09:00 EDT
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Reading Time: 1 min


Obligate, a cutting-edge on-chain capital markets platform operating on the Polygon blockchain, has announced that Bitcoin Suisse, a leading Swiss crypto-financial services provider, has successfully issued its inaugural tokenized bond on the platform.
With assets under custody totaling CHF 5 billion ($5.5 billion), Bitcoin Suisse plans to utilize the funds raised from the tokenized bond issuance to fuel the growth of its domestic lending operations.
Tokenized bonds involve the digital representation of a bond through the use of blockchain technology.
Obligate enables companies to issue on-chain bonds and secure funding from investors within a regulated decentralized finance (DeFi) ecosystem.
Settlement Currency Utilized: USDC Stablecoin
For the settlement of the bond issuance, the firms opted to use the stablecoin USDC. The bonds were settled through an atomic settlement process against Circle’s stablecoin.
Sandro Huwyler, head of treasury at Bitcoin Suisse, commented, “The additional capital raised from this bond issuance will support the expansion and growth initiatives of our lending business.”
Stephan D. Meyer, co-founder and chief legal officer at Obligate, stated, “By facilitating this tokenized bond issuance, we empower institutional-grade brokers and custodians like Bitcoin Suisse, who manage billions in assets, to leverage our advanced blockchain technology, robust legal framework, and collateralization capabilities.”
Bitcoin Suisse, headquartered in Zug and established in 2013, prides itself on being among the first institutions in Switzerland to offer 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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