Bitcoin Suisse Issues Tokenized Bond on Obligate

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Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk, Bitcoin Magazine and Bitcoin.com.

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June 11, 2024 07:33 EDT

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Obligate, an on-chain capital markets platform built on the Polygon blockchain, said the Swiss crypto-financial services firm Bitcoin Suisse has issued its first tokenized bond issuance on its platform.

Bitcoin Suisse has CHF 5 billion ($5.5 billion) in assets under custody. The firm said the funds raised from its tokenized bond issuance will be used for the growth of its domestic lending business.

Tokenized bonds involve the creation of a digital representation of a bond using blockchain technology. Obligate allows companies to issue on-chain bonds and receive funding from investors in a regulated DeFi environment.

USDC Stablecoin Used as Settlement Currency

The firms used the stablecoin USDC as their settlement currency. The bond issuance was done using atomic settlement of the issued bonds against Circle’s stablecoin.

“The additional capital generated through the issuance of the new bond will bolster the expansion and growth effort of our lending business,” said Sandro Huwyler, head treasury of Bitcoin Suisse,

“By facilitating this tokenized bond issuance, we empower institutional-grade brokers and custodians like Bitcoin Suisse, who custody billions in assets, to leverage our advanced blockchain technology, robust legal framework, and collateralization capabilities,” said Stephan D. Meyer, co-founder and chief legal officer at Obligate.

Bitcoin Suisse is headquartered in Zug and was founded in 2013. The firm claims to be one of the first institutions in Switzerland to offer crypto asset collateralized loans to its clients to increase their capital.

Investors in Obligate include Circle, Blockchange Ventures, Earlybird Venture Capital and the SIX group.