The news comes as the tokenized real-world asset sector is booming.<\/p>\n
Bitcoin Suisse, a Swiss crypto-financial services provider managing $5.57 billion in assets, has issued a tokenized bond product on Polygon.<\/p>\n
Announced on June 11, Bitcoin Suisse\u2019s bond is considered investment-grade quality and is overcollateralized, meaning the value of the assets backing the bond exceeds that of the loan. Transactions are settled using USDC, the second-largest stablecoin by market cap.<\/p>\n
The bond was issued in partnership with Obligate, an on-chain capital markets platform that has assisted many mainstream companies issue blockchain-based bonds. Qualified investors using Obligate directly invested in the private debt issuance.<\/p>\n
\u201cThe 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\u2019s accredited investors,\u201d Obligate said.<\/p>\n
\u201cBitcoin Suisse remains committed to bridge the gap between traditional finance and decentralized technology,\u201d said Sandro Huwyler, Bitcoin Suisse\u2019s head of treasury. \u201cThe milestone of issuing this tokenized bond reinforces our pioneering role in the industry.\u201d<\/p>\n
Bitcoin Suisse was among Switzerland’s first institutions to offer loans collateralized by crypto assets to clients. Bitcoin Suisse will use the funds from the bond to support the growth of its domestic lending business.<\/p>\n
Bitcoin Suisse\u2019s foray into on-chain bond issuance comes as the tokenized real-world asset (RWA) sector is booming.<\/p>\n
The market cap of tokenized treasury assets<\/a> has more than doubled since the start of the year, currently sitting at more than $1.49 billion, according to Rwa.xyz.<\/p>\n The trend has been buoyed by BlackRock, the world\u2019s largest asset manager, launching the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which has ballooned to a market cap of $462.3 million since launching<\/a> in March. The Franklin Onchain U.S. Government Money Fund (FOBXX) also grew by 27% over the past quarter to sit at $344.4 million.<\/p>\n Bond tokenization is also beginning to gain momentum, with Misyon Bank, a leading Turkish investment bank, launching<\/a> a real-world asset tokenization platform on Avalanche targeting corporate and government bonds last week. The company also became the first institution to offer corporate Eurobonds and Turkish sovereign bonds to retail investors.<\/p>\n Obligate has been extremely active in tokenizing bonds this year, with the firm bringing bonds on-chain from firms spanning aviation, logistics and invoice financing, and small and medium-sized enterprises (SMEs) in emerging markets<\/p>\n In December, Obligate expanded<\/a> onto Base, the Layer 2 network from Coinbase, enabling the creation of on-chain capital debt markets on the L2. The following month, Obligate was invited to join the Tokenized Asset Coalition<\/a> alongside Coinbase and Circle. In April, the firm teamed up<\/a> with Mikro Capital to launch its first bond on Base<\/p>\nObligate brings bonds on-chain<\/h2>\n