- The announcement coincides with a growth in the tokenized real-world asset market.
Tokenized bond instrument on Polygon, launched by Swiss crypto-financial services business Bitcoin Suisse, which oversees $5.57 billion in assets.
The June 11 announcement of Bitcoin Suisse’s bond indicates that it is overcollateralized, or that the value of the assets supporting the bond exceeds the loan amount, and that it is of investment-grade quality.
The bond was issued in collaboration with Obligate, a platform for on-chain capital markets that has helped numerous well-known businesses issue bonds based on blockchain technology. The private debt issuance was directly funded by qualified investors who used Obligate.
According to Obligate, the deal gives Bitcoin Suisse quicker and less expensive access to funds while also presenting a new tokenized real-world asset investment opportunity for the company’s accredited investors.
According to head of treasury Sandro Huwyler, Bitcoin Suisse is still dedicated to bridging the gap between traditional finance and decentralized technologies. Our industry-leading position is further cemented by the milestone of issuing this tokenized bond.
Bitcoin Suisse was among the first businesses in Switzerland to offer loans to clients backed by cryptocurrency holdings. Bitcoin Suisse plans to utilize the bond’s profits to fund the growth of its domestic lending business.
Real-world assets on-chain increase
Bitcoin Suisse has issued on-chain bonds at the same time that the market for tokenized real-world assets (RWAs) is expanding rapidly.
According to Rwa.xyz, the market capitalization of tokenized treasury assets has more than doubled since the year’s beginning and is at over $1.49 billion.
BlackRock, the biggest asset manager in the world, launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) in March, and since then, it has grown to a market value of $462.3 million, which has spurred the trend. Additionally, throughout the last quarter, the Franklin Onchain U.S. Government Money Fund (FOBXX) increased by 27% to reach $344.4 million.
Bond tokenization is also picking up steam. Leading Turkish investment bank Misyon Bank launched a real-world asset tokenization platform on Avalanche last week, focusing on corporate and government bonds. Additionally, the company became the first organization to provide ordinary investors with Turkish sovereign bonds and corporate Eurobonds.
Obligate adds links to the chain
Obligate has tokenized bonds quite a bit this year. The company has added bonds from small and medium-sized enterprises (SMEs) in developing nations, as well as firms in the aviation, logistics, and invoice finance sectors, to the blockchain.
Obligate extended onto Base, Coinbase’s Layer 2 network, in December, making it possible to establish on-chain capital debt markets on the L2. The following month, Coinbase, Circle, and Obligate received invitations to become members of the Tokenized Asset Coalition. The company and Mikro Capital launched the company’s first bond on Base in April.
Additionally, Obligate introduced the first structured investment product on Polygon denominated in USDC in September of 2023.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
