Swiss crypto custodian Bitcoin Suisse has issued a tokenized bond via Obligate to enhance its growth efforts in the lending sector. Bitcoin Suisse, Switzerland’s largest crypto custodian with over $5.5 billion in assets under custody, has secured new capital through this issuance on Obligate, an on-chain capital markets platform.

The investment-grade bond is overcollateralized and uses Circle’s USD Coin (USDC) stablecoin as the settlement currency. The issuance was executed via atomic settlement of the bonds against the stablecoin.

Bitcoin Suisse head of treasury Sandro Huwyler stated that the additional capital generated through this new bond will support the expansion and growth of their lending business, meeting the increasing demand from clients.

Bitcoin Suisse remains committed to bridging the gap between traditional finance and decentralized technology. The milestone of issuing this tokenized bond reinforces our pioneering role in the industry and reflects the trust investors place in Bitcoin Suisse, its financials, and its business model.

Commenting on the bond tokenization, Obligate co-founder Stephan D. Meyer mentioned that the platform aims to empower institutional-grade brokers and custodians like Bitcoin Suisse, who manage billions in assets, by leveraging advanced blockchain technology, a robust legal framework, and collateralization capabilities.

Founded in 2013 by Niklas Nikolajsen, Bitcoin Suisse offers crypto cold storage services for institutional investors. In 2020, the Zug-headquartered company raised CHF 45 million (over $50 million) in a Series A funding round from a range of Swiss and international investors, including Roger Studer, the former head of investment banking at Bank Vontobel, and Swiss banker Tobias Reichmuth.

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