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Obligate Completes First Tokenized Bond Issuance for Bitcoin Suisse

Obligate has completed the first tokenized bond issuance for Bitcoin Suisse, enhancing its lending business and solidifying its position as Switzerland’s largest crypto custodian.


 Obligate has completed the first tokenized bond issuance for Bitcoin Suisse, enhancing its lending business and solidifying its position as Switzerland’s largest crypto custodian.
Credit: Foretoken Media 2024

ZURICH – Obligate, the leading on-chain capital markets platform, has announced the successful completion of the first tokenized bond issuance for Bitcoin Suisse, Switzerland’s top crypto-financial services provider. The landmark issuance is set to accelerate Bitcoin Suisse’s growth in its lending business, further solidifying its position as Switzerland’s largest crypto custodian with over CHF 5 billion in assets under custody.


Pioneering Crypto-Asset Collateralized Loans


Bitcoin Suisse has long been at the forefront of offering crypto asset-collateralized loans, enhancing capital efficiency for its clients. The new tokenized bond issuance by Obligate underscores the rapid adoption of tokenized real-world assets within the wider FinTech ecosystem. The transaction exemplifies Obligate’s strategy of providing institutional borrowers with access to new capital sources.


Advanced Security and Efficiency in Tokenized Bond Issuance


The investment-grade level bond issued is overcollateralized, offering an additional layer of security for investors. Featuring advanced collateral management with conservative Loan-to-Value (LTV) ratios, the issuance was conducted using USDC as the settlement currency.


This was achieved through the atomic settlement of the issued bonds against Circle’s stablecoin, significantly enhancing transaction efficiency. Stephan D. Meyer, Co-Founder and CLO at Obligate, commented:


“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.”

Institutional Trust and Direct Investment


Qualified investors with Obligate have seized the opportunity to directly invest in this private debt issuance, demonstrating trust in Obligate and highlighting the solid balance sheet of Bitcoin Suisse.


This marks a significant step toward integrating traditional financial mechanisms with innovative digital solutions, setting a new standard for asset-backed lending in the digital economy. Stephan added,


“It is a significant step toward integrating traditional financial mechanisms with innovative digital solutions, setting a new standard for asset-backed lending in the digital economy.”

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