Smarter Web Launches UK’s First $21M Bitcoin Bond Backed by TOBAM

Smarter Web Launches UK's First Bitcoin-Denominated Bond in $21 Million Deal with TOBAM

In a groundbreaking move for the global financial sector, UK-based Smarter Web Company has become the first entity in the country to issue a Bitcoin-denominated bond. The $21 million bond, fully subscribed by leading French institutional investor TOBAM, marks a historic intersection between traditional finance and the burgeoning world of digital assets.

The issuance signals a transformative moment in the evolution of crypto-linked financial products, made possible by the UK’s updated regulatory framework on crypto assets, which came into effect in April 2025. These regulations have paved the way for regulated companies to explore innovative financing models involving digital currencies.

Source: X

What Is a Bitcoin-Denominated Bond?

A Bitcoin-denominated bond is a financial instrument in which the principal is pegged to Bitcoin rather than traditional fiat currencies like the US dollar or British pound. In essence, it allows companies to borrow money in Bitcoin and repay investors in the same currency. This gives investors direct exposure to the performance of BTC, while offering companies an alternative route to raise capital.

Source: Official Smarter Web Company Website

However, this financial model is not without its risks. The inherent volatility of Bitcoin means that the value of the bond can fluctuate dramatically. This makes it a potentially high-reward but high-risk proposition for both issuers and investors.

Smarter Web’s Bold Financing Strategy

The Smarter Web Company’s decision to issue a Bitcoin-denominated convertible bond is a strategic one, reflecting its forward-looking approach to digital finance. The bond distinguishes itself in several ways:

• Priced in Bitcoin: Unlike most bonds denominated in fiat currencies, this bond is entirely priced in BTC.

• Zero-Coupon Structure: The bond does not pay periodic interest. Instead, it is issued at a discount and repaid at its full value upon maturity or conversion.

• Convertible into Equity: Investors have the option to convert the bond into company equity at a 5% premium, offering additional upside potential.

• Controlled Crypto Exposure: The company has limited its Bitcoin exposure to 30% of the bond proceeds, demonstrating a balanced approach to risk.

This innovative financial structure allows Smarter Web to secure funding while aligning with its long-term vision of integrating blockchain and crypto technologies into its core business strategy.

TOBAM's Full Investment Underscores Institutional Confidence

TOBAM, a Paris-based asset manager known for its early adoption of digital assets, has fully subscribed to the $21 million bond. This endorsement from a reputable institutional investor sends a strong signal to the broader market that Bitcoin-based financial products are gaining legitimacy.

TOBAM’s involvement is especially noteworthy given the firm’s history with digital asset investments. As early as 2017, the company launched one of Europe’s first Bitcoin mutual funds. Its latest investment further cements its reputation as a pioneer in the space.

Smarter Web’s Growing Crypto Ambitions

This bond issuance is not Smarter Web’s first foray into digital finance. In 2023, the company implemented a Bitcoin treasury policy, setting aside a portion of its reserves in BTC. This forward-thinking strategy positioned the company well ahead of the curve in adopting digital assets as a legitimate store of value.

By launching a Bitcoin-denominated bond, the company is taking another bold step in aligning its capital structure with the decentralized financial ecosystem. The move reflects a broader shift among tech-driven firms aiming to blend blockchain technology with conventional business practices.

Regulatory Clarity Accelerates Innovation in the UK

The UK’s updated crypto asset regulations, rolled out in April 2025, played a crucial role in enabling this pioneering financial product. The regulations offer clear guidelines for issuing crypto-linked securities, ensuring investor protection while encouraging innovation.

The government has publicly stated its ambition to become a global hub for digital asset innovation. The launch of the Smarter Web bond aligns closely with this vision and could serve as a model for other companies looking to tap into blockchain-based financing mechanisms.

Financial analysts believe that this development may encourage more companies to explore similar instruments. With investor confidence on the rise, especially among institutions, Bitcoin-denominated financial tools could become more commonplace in the near future.

Broader Implications for Financial and Crypto Markets

The Smarter Web bond marks a pivotal moment in the integration of cryptocurrency into mainstream finance. If successful, it may open the door to a host of new financial instruments that merge traditional structures with digital assets.

According to experts, the issuance could:

• Attract Institutional Capital: More institutional players may begin to view Bitcoin as a viable asset class.

• Enable Portfolio Diversification: Investors could use Bitcoin-denominated bonds to diversify beyond conventional bonds and equities.

• Test Financial Market Resilience: The performance of such bonds will be closely monitored, especially in times of market volatility.

Despite the enthusiasm, challenges remain. A 2023 study in the Journal of Financial Economics warned that Bitcoin-denominated bonds are still experimental. The limited historical data available makes it difficult to assess long-term risks and returns. Market observers stress the need for cautious optimism and ongoing monitoring.

Looking Ahead

The issuance of a Bitcoin-denominated bond by a regulated UK company, fully backed by a credible institutional investor, is more than a financial innovation—it is a milestone. It validates Bitcoin's growing role in global capital markets and reflects a changing mindset in the investment world.

As the world watches how this bond performs, its success or failure could set the tone for the next wave of crypto-financial integration. Companies, regulators, and investors alike will be closely evaluating the outcomes.

Whether this becomes a blueprint for future funding or a cautionary tale will depend on market dynamics, regulatory responses, and the broader adoption of cryptocurrency as a mainstream financial tool.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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