Crypto-friendly SEBA Bank launches bitcoin product that offers yield


Crypto-friendly SEBA Bank has launched a new bitcoin structured product that allows investors to earn yield.

The product, called Dual Currency Certificate, is linked to the BTC/USD exchange rate. It is issued at a discount to the current price of bitcoin (the underlying instrument) in relation to the USD.

If at the product's maturity of three weeks, bitcoin's price is equal to or greater than the strike price, investors receive the maximum yield of 3.23% (44.7% p.a.), said SEBA. If at maturity, bitcoin is down, investors may lose their entire investment, it added.

“This structured product should be regarded as a hold-to-maturity investment: even if the performance of the underlying is stable or positive, the price of the product during the term can be considerably below the issue price," said the bank. 

SEBA added that the product is aimed at investors who have a “moderately positive” view on bitcoin.Source: SEBA

The product is open for subscription from today until July 7. The issue size of the product is 10,000 certificates with a total amount of $10 million. The minimum trade size is ten certificates and multiples thereafter.

SEBA said the product is publicly distributed in Switzerland and is available in other countries as a private placement. It is not available in the U.S. and U.K., among other restricted countries.

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With more than $100 billion in market cap across all chains, it is likely that the DeFi market cap will grow to $200 billion by 2025. However, many users still face various technical barriers when using decentralised platforms to do on-chain farming, staking and trading, while off-chain solutions face liquidity issues, fiat restrictions and the lack of a central multichain to support crypto assets and institutional-grade custodians. 
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