The bond issuance, the first of its kind for an airline according to the official press release, used the USDC stablecoin and offered investors a 15-month, 15% p.a. return. The raised capital aims to support BermudAir's operational and resource enhancements, particularly in route expansion to meet increasing demand and venture into new markets.
Representatives from BermudAir highlighted the evolving financing needs of the airline and the benefits of leveraging new fintech solutions for capital management. In turn, representatives from XBTO emphasised the significance of democratised access to funding opportunities enabled by blockchain technology. Obligate officials chimed in and emphasised the efficiency and security of blockchain-based debt issuances.
The bond issuance was denominated in USDC, a stablecoin pegged to the US dollar and backed by reserves including cash and US treasuries. These reserves are held in custody by leading US financial institutions such as BlackRock and BNY Mellon.
More information about the three entities
BermudAir is a Bermudian airline operating from L.F. Wade International Airport in Hamilton, Bermuda. On 1 September 2023, the airline began operating flights between its base in Bermuda and the United States. BermudAir has rapidly expanded its operations, now serving seven routes across the US and Canada.
XBTO specialises in custom investment solutions for non-US investors and institutions, leveraging its expertise in digital assets and traditional finance.
As for Obligate AG, it is a member of VQF, a Swiss FINMA-regulated AML SRO, offering a secure and regulatory-compliant platform for the issuance and trading of debt instruments on the blockchain, working with institutional investors and issuers.
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