Silver Castle, an Israeli digital asset investment firm, has issued Bitcoin -linked and backed bonds today on TASE UP, which is a platform of the Tel Aviv Stock Exchange allowing tech companies to raise funds without going for an IPO.
The press release shared with Finance Magnates detailed that the Bitcoin instruments will enable institutional and qualified investors to add digital currency exposure to their existing portfolios.
“The joint endeavor with TASE and its exposure to the institutional market in Israel is a significant milestone in forming awareness and recognition for the digital assets sector,” Silver Castle CEO, Eli Mizruch said.
Putting Bitcoin on the Mainstream Market
The issued bonds will have a term of three years and will not bear any interest. The company further detailed that the proceeds collected from the bond issuance will be only utilized in the purchase of Bitcoin.
Additionally, the redemption of Bitcoin bonds will be made in shekels at the exchange rate of the digital currency on the redemption date. Moreover, the issuer will allow weekly early redemption of the bonds that will be available at the end of three months.
“As significant companies enter the [crypto] field, we believe that the Israeli capital market is better prepared to participate in the sector and a growing number of companies realize that investment in digital assets contributes to portfolio diversification, without correlation to other assets, offering a substantial profit potential,” Mizruch added.
Founded in 2018, Silver Castle offers cryptocurrency investment services through its digital currency hedge funds. It is exploring services like Bitcoin-backed loans, advanced trading strategies and other products to expand its offerings to institutional clients.
“The launch of TASE UP allows institutional and qualified investors direct access to new investment opportunities, in both private companies and innovative products, such as Bitcoin-linked bonds, all through a platform that was constructed to resemble the infrastructure of TASE's familiar trading and clearing systems,” said Ittai Ben Zeev, CEO of TASE.
