Sirlibz
Swiss SEBA Bank has launched a new BTC product known as Dual Currency Certificate; it will allow investors to earn yields.
The Dual Currency Certificate product is linked to the BTC/USD exchange rates. It is issued at discount to the current price. The product will help investors take advantage of Bitcoins volatility.
“The launch of the Dual Currency certificate on BTC/USD shows how traditional banking and crypto finance are converging. Investors benefit both from the stability of a fully regulated Swiss bank and from yield opportunities offered by the crypto market.”- Stated Guido Buhler, CEO of SEBA Bank AG
This means that when a product matures which takes a period of 3 weeks, and the Bitcoin price is equal to or greater than the strike price, investors get the minimum yield of 3.23% (44.7% p.a). If at maturity Bitcoin price is down, investors may also lose their entire investment, the Bank stated.
“This structure of product should be regarded as a hold-to-maturity investment, even if the performance of the underlying asset is stable or possible, the price can be considerably below the issue price”- The Bank stated.
This product is aimed at those investors that have a “moderately positive” view on Bitcoin (BTC).
The product has been opened and ready for subscription since June 7th 2020. Product size issued is 10,000 minimum trade sizes of 10 certificates and multiples thereafter. SEBA Bank has noted that the product is publicly available in Switzerland and other countries but as a private placement. The US and UK are countries among the restricted regions.
