Swiss crypto custodian Bitcoin Suisse has raised fresh capital through the issuance of a tokenized bond on the Obligate platform, aiming to boost its lending business.
Tokenized Bond Issuance
Bitcoin Suisse, Switzerland’s leading crypto custodian with over $5.5 billion in assets under custody, has successfully issued a tokenized bond using Obligate, an on-chain capital markets platform. The bond is investment-grade and overcollateralized, utilizing Circle’s USD Coin (USDC) stablecoin for settlement. The issuance was completed through the atomic settlement of the bonds against the stablecoin.
Strategic Growth and Market Positioning
Sandro Huwyler, Bitcoin Suisse’s head of treasury, highlighted the strategic importance of this new capital. He stated, “The additional capital generated through the issuance of the new bond will bolster the expansion and growth effort of our lending business and help us meet the growing demand of our clients.” Huwyler emphasized Bitcoin Suisse’s commitment to bridging the gap between traditional finance and decentralized technology, noting that this milestone reinforces their pioneering role in the industry and reflects the trust investors place in their financials and business model.
Obligate’s Role and Vision
Obligate co-founder Stephan D. Meyer commented on the significance of the bond tokenization, stating, “Our platform aims to 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.”
Background and Previous Funding
Founded in 2013 by Niklas Nikolajsen, Bitcoin Suisse provides crypto cold storage services for institutional investors. The company has a notable history of raising capital, including a CHF 45 million (over $50 million) Series A funding round in 2020. This round saw participation from Swiss and international investors, including Roger Studer, former head of investment banking at Bank Vontobel, and Swiss banker Tobias Reichmuth.
Conclusion
The successful issuance of a tokenized bond via Obligate marks a significant step for Bitcoin Suisse, reinforcing its position as a leader in the crypto custodian space. This move not only underscores the company’s commitment to integrating traditional finance with blockchain technology but also sets a precedent for future capital-raising efforts within the industry.
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