Silver Castle digital currency investment house and the Tel Aviv Stock Exchange have issued the first Bitcoin-linked and backed bonds in Israel on the TASE UP platform, the company and the TASE announced Tuesday.
Follow Israel Hayom on Facebook and Twitter
The series of bonds issued will have term of three years and will not bear interest. The capital raised in the issuance will be used solely in the purchase of Bitcoin and the monies will be fully exposed to the exchange rate of the Bitcoin. The trading of the bonds will be subject to the rules of TASE UP. The redemption of the Bitcoin will be paid for in shekels, based on the exchange rate of the Bitcoin on redemption date, less commissions. Weekly early redemption will become available at the end of three months, based on a formula that weights the exchange rate of the Bitcoin on early redemption, less commissions.
Until now, Bitcoin could be obtained by way of direct purchase and holding, bitcoin delivery agreements, and Israeli or foreign hedge funds. Starting today, institutional and qualified investors can also purchase Israeli Bitcoin bonds on TASE UP.
Silver Castle CEO Eli Mizroch said, "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 … Technology has changed the way in which we manage our funds and investments, and the new generation of investors influences the format of the market and the channels of investments in companies."
TASE CEO Itai Ben Zeev said, "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."
