As the tokenized sector becomes an important part of the ever-evolving crypto world, Bitcoin Suisse has launched tokenized bonds on Obligate which is an on-chain capital markets platform built on the Polygon.
Bitcoin Suisse is in charge of assets valued at CHF 5 billion ($5.5 billion). The company would expand its domestic lending operations with the money it raised from the sale of its tokenized bonds.
What Are Tokenized Bonds?
Tokenized bonds were issued by Bitcoin Suisse on June 11 in collaboration with Obligate. In simple terms, tokenized bonds refer to the creation of a digital representation of a bond using blockchain technology.
This year, Obligate has been very active in tokenizing bonds. The company has brought bonds onto the blockchain from companies in the aviation, logistics, and finance sectors, & small and medium-sized businesses (SMEs) in emerging regions.
“The agreement creates faster, reduced-cost access to capital for Bitcoin Suisse, while at the same time creating a new tokenized real-world asset investment opportunity for Obligate’s accredited investors,” Obligate said.
What Is The Use Of USDC Stablecoins?
The USDC Stablecoins were used as a settlement currency in bond issuance by initiating the use of 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.
Hence, the transactions are settled by using USDC, the second-largest stablecoin by market cap.
If you are willing to stay updated with such on-priority updates, then there’s no better place than ReadingCrypto. And, to brush up on your existing knowledge along with clearing your basics regarding the crypto world, head to MyCryptoSafari – a YouTube channel built for crypto players like you. Stay tuned!
