According to the press release shared by the company, the bond issued is investment grade. This means the bond is classified as investment grade by credit rating agencies. Additionally, the bond is overcollateralized. This means that more collateral than the value of the debt is blocked during the bond issuance. This creates additional assurance for investors.

A stablecoin called USD Coin (USDC) was used in the settlement of the bond. Stablecoins are cryptocurrencies designed to have their value always equal to one US dollar. In this way, it is aimed that they will not be affected by the high volatility of the cryptocurrency markets. Using USDC ensures that investors are not exposed to price fluctuations during the transaction.

Sandro Huwyler, head of treasury management at Bitcoin Suisse, states that the new bond issuance will bring significant benefits to the company. Huwyler says the additional capital will “support the expansion and growth efforts of our credit business and help us meet the growing demand of our customers.” This statement reveals that Bitcoin Suisse aims to become a more active player in the crypto lending space.

Stephan D. Meyer, co-founder of Obligate, expresses his satisfaction with the cooperation with Bitcoin Suisse. Meyer states that their platform wants to “enable institutional-grade brokers and custodians, such as Bitcoin Suisse, who maintain billions of dollars in assets, to benefit from our advanced blockchain technology, robust legal framework, and collateralization capabilities.” These words underscore Obligate’s goal of acting as a bridge for traditional financial institutions to adopt blockchain technology.

Bitcoin Suisse was founded by Niklas Nikolajsen in 2013. The company offers secure cryptocurrency custody services for institutional investors. The Zug-based company raised 45 million Swiss francs (approximately US$50 million) in a Series A financing round in 2020. Investors include names such as Bank Vontobel’s former head of investment banking Roger Studer and Swiss banker Tobias Reichmuth.

This step by Bitcoin Suisse is considered as an indication that the cooperation between the cryptocurrency market and traditional finance is increasing. Innovative products such as tokenized bonds offer new opportunities to investors and allow institutions to benefit from the advantages of blockchain technology. This may pave the way for further maturation and growth of the cryptocurrency market in the future.