XBTO collaborates with Arab Bank Switzerland for new Bitcoin yield product.
XBTO has recently teamed up with Arab Bank Switzerland to unveil a groundbreaking Bitcoin yield investment product, catering to the increasing interest in crypto-based returns. The collaboration aims to offer both institutional and individual clients the opportunity to engage with Bitcoin while earning competitive yields through secure and regulated means.
This strategic move comes in response to the rising demand for cryptocurrency products that generate yield within a robust regulatory framework and under institutional supervision. The new offering, known as an “Arab Bank Switzerland product powered by XBTO,” seeks to leverage XBTO’s established expertise in managing digital assets for institutional clients while expanding investment possibilities for its existing and potential client base.
Karl Naim, XBTO’s Chief Commercial Officer and General Manager for UAE, highlighted the significance of partnering with reputable financial institutions to meet evolving client needs. He emphasized Arab Bank Switzerland’s substantial groundwork in digital asset infrastructure development over the past six years, alongside the growing interest from clients seeking yield-generating Bitcoin products.
Arab Bank Switzerland is no stranger to the digital asset landscape, having provided Bitcoin custody services through its partnership with Taurus since 2019. However, the bank identified a specific demand from high-net-worth clients seeking yield opportunities for their Bitcoin holdings, prompting them to collaborate with XBTO on this innovative offering.
Romain Braud, Head of Digital Assets at Arab Bank Switzerland, underscored the importance of integrating yield-generating solutions while maintaining a prudent risk management framework tailored to wealth management clients. This partnership positions Arab Bank Switzerland as a pioneer among traditional Swiss private banks, offering a tailored Bitcoin yield product that aligns with clients’ expectations of personalized service and fiduciary responsibility.
XBTO’s “Diamond Hands” strategy leverages an options-based approach to generate yield from existing Bitcoin holdings while strategically accumulating more Bitcoin during market fluctuations. This methodology uses Bitcoin collateral for options transactions, enabling clients to earn premiums while strategically positioning themselves to benefit from market downturns.
Javier Rodriguez-Alarcon, XBTO’s Chief Investment Officer and Head of Asset Management, emphasized the need for sophisticated solutions in response to the increasing institutional demand for digital assets. He highlighted the importance of risk management and institutional oversight in delivering consistent yield generation and capital preservation for clients, moving away from speculative trading practices.
In conclusion, this collaboration between XBTO and Arab Bank Switzerland represents a significant step towards integrating secure and yield-generating crypto solutions into the mainstream financial sector. By combining institutional expertise with regulatory oversight, these two entities seek to offer clients a unique opportunity to engage with Bitcoin while earning competitive yields in a controlled and secure environment.
