XBTO leads $3 million blockchain-native revenue-share note for BermudAir via Obligate

XBTO leads $3 million blockchain-native revenue-share note for BermudAir via Obligate

July 2, 2025

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XBTO leads $3 million blockchain-native revenue-share note for BermudAir via Obligate | Image by XBTO
XBTO leads $3 million blockchain-native revenue-share note for BermudAir via Obligate | Image by XBTO

XBTO leads $3 million blockchain-native revenue-share note for BermudAir via Obligate | Image by XBTO

XBTO leads $3 million blockchain-native revenue-share note for BermudAir via Obligate | Image by XBTO

HAMILTON, Bermuda – XBTO, a 10-year global leader in institutional digital asset management, today announced its role as lead investor in a landmark $3 million revenue-share note issuance by BermudAir, Bermuda's national flag carrier. The transaction was executed entirely on-chain through Swiss-regulated platform Obligate, marking the most recent collaboration between the parties following a successful $1 million bond issuance in May 2024.

The deal represents institutional deployment of capital in blockchain-native private credit markets, demonstrating growing institutional adoption of regulated blockchain capital markets infrastructure. The entire transaction lifecycle, from structuring and issuance through to settlement and ongoing repayment, occurs on Obligate’s smart contracts deployed on the Polygon blockchain, eliminating traditional intermediaries and paperwork whilst maintaining regulatory compliance under Swiss law."This transaction demonstrates that blockchain-powered debt markets can meet institutional requirements," said Philippe Bekhazi, CEO of XBTO Group. "We're seeing real-world businesses access capital more efficiently through regulated on-chain infrastructure and we're positioned to support that evolution."

The instrument provides investors with both fixed yield and participation in BermudAir’s revenue upside, representing a first-of-its-kind revenue-share bond that directly ties investor returns to the airline’s financial performance. This alignment creates a compelling value proposition for both yield-focused investors and those seeking growth exposure within a compliant, blockchain-native framework. Structured as a regulated eNote™ under Switzerland’s DLT Act and denominated in USDC, the note operates natively on blockchain infrastructure while ensuring full legal recognition and enforceability.The revenue-share model aligns with BermudAir's growth trajectory as it expands from its initial three US routes to 14 destinations across the United States and Canada. Since its founding in May 2023, the airline has rapidly scaled operations and recently added its third and fourth aircraft to support increased flight frequencies.

"XBTO's approach provides flexible capital that scales with our expansion,” said Adam Scott, Founder and CEO of BermudAir. “This financing model aligns well with our growth strategy whilst maintaining the regulatory compliance standards we require."

XBTO's focus on private credit markets reflects broader institutional recognition of blockchain efficiency advantages in debt instrument issuance, settlement, and administration. The aviation sector application demonstrates the technology's applicability across traditional industries with substantial capital requirements.

"Our collaboration with XBTO highlights institutional appetite for regulated blockchain infrastructure," said Tobias Wohlfarth, Chief Business Officer & Deputy CEO at Obligate. "This transaction demonstrates how innovative solutions can be enabled through our eNote™ framework to provide investors access to private markets on-chain."

The deal also addresses financing challenges for growth-stage companies, which often find traditional debt markets are architected for larger transactions. Blockchain-based platforms can serve smaller issuances more efficiently, potentially expanding capital access for dynamic businesses. XBTO's institutional approach combines traditional financial discipline with blockchain-native capabilities, positioning the firm to participate in the evolution of capital markets infrastructure.

The collaboration between XBTO and BermudAir includes strategic elements beyond the financing arrangements. XBTO has been a key supporter of BermudAir since the airline's inception, and this relationship was recently recognised when BermudAir named its fourth aircraft "XBTO". The Embraer E190, which entered service in June 2024, serves as a visible symbol of the partnership across North American business centres.

Media contacts

For XBTO:
Athraa Bheekoo
Luna PR
athraa@lunapr.io

About XBTO

From asset management to capital markets, XBTO helps clients capture opportunities in the age of digital assets. Founded in 2015 as a proprietary trading firm, XBTO built its foundation through nearly a decade of active participation in digital asset markets. Since 2023, XBTO has expanded into a full-service crypto quantitative investment firm. With a strong focus on Bitcoin, XBTO delivers risk-adjusted strategies across the alpha–beta continuum designed to perform across market cycles and regulatory environments. With decades of experience earned at the world’s leading financial institutions and deep expertise in digital markets, XBTO brings a rare combination of financial discipline and digital-native insight. XBTO operates under robust regulatory oversight, with operating entities regulated by the Bermuda Monetary Authority and the Financial Services Regulatory Authority in Abu Dhabi. It operates from key financial hubs including Bermuda, New York, Miami, London, Paris, and Abu Dhabi.

About Obligate

Obligate is a leading provider of blockchain-based capital markets infrastructure, enabling secure and compliant issuance and management of digital securities. With a mission to rewire capital markets, Obligate empowers companies to raise capital on-chain with unprecedented efficiency and transparency.

About BermudAir

BermudAir is Bermuda's airline, committed to redefining the travel experience. With a fleet of Embraer E175 and E190 aircraft renowned for exceptional performance and passenger comfort, BermudAir exemplifies its commitment to excellence. Operating convenient flights to and from Westchester Country Airport, Boston Logan International Airport, Fort Lauderdale-Hollywood International Airport, Orlando International Airport, Charleston International Airport, Raleigh-Durham International Airport, Bradley International Airport and Baltimore/Washington International Thurgood Marshall Airport, and Richmond International Airport. BermudAir enhances connectivity to the U.S. East Coast, contributing to the growth and prosperity of Bermuda, BermudAir also operates flights to Toronto Pearson International Airport, Halifax Stanfield International Airport, and Montréal-Pierre Elliott Trudeau International Airport in Canada. With a dedication to exceptional service and curated onboard offerings that showcase the island’s renowned hospitality and varied food and beverages available locally, BermudAir provides an unparalleled travel experience. For more information, please visit www.flybermudair.com.

The full breakdown

In our first article, "Navigating Crypto Volatility: The Advantages of Active Management," we explored how the high volatility and low correlation of digital assets with traditional asset classes create unique opportunities for active managers. We discussed how these characteristics enable active managers to execute tactical trading strategies, capitalizing on short-term price movements and market inefficiencies.
Building on that foundation, we now turn our attention to the unique market microstructure of digital assets.

Conducive market microstructure of digital assets

The market microstructure of digital assets - a framework that defines how crypto trades are conducted, including order execution, price formation, and market interactions - sets the stage for active management to thrive. This unique ecosystem, characterized by its continuous trading hours, diverse trading venues, and substantial market liquidity, offers several advantages for active management, providing a fertile ground for sophisticated investment strategies.

24/7/365 market access

One of the defining characteristics of digital asset markets is their continuous, round-the-clock operation.

Unlike traditional financial markets that operate within specific hours, cryptocurrency markets are open 24 hours a day, seven days a week, all year round. This continuous trading capability is particularly advantageous for active managers for several reasons:

  1. Immediate response to market events: Unlike traditional markets that close after regular trading hours, digital asset markets allow managers to react immediately to breaking news or events that could impact asset prices. For instance, if a significant economic policy change occurs over the weekend, managers can adjust their positions in real-time without waiting for markets to open.
  2. Managing volatility: Continuous trading provides more opportunities to capitalize on price movements and volatility. Active managers can take advantage of this by implementing strategies such as short-term trading or hedging to mitigate risks and lock in gains whenever market conditions change. For instance, if there’s a sudden drop in the price of Bitcoin, managers can quickly sell their holdings to minimize losses or buy in to capitalize on the lower prices.

Variety of trading venues

The proliferation and variety of trading venues is another crucial element of the digital asset market structure. The extensive landscape of over 200 centralized exchanges (CEX) and more than 500 decentralized exchanges (DEX) offers a wide array of platforms for cryptocurrency trading. This diversity is beneficial for active managers in several ways:

  1. Risk management and diversification: By spreading trades across various exchanges, active managers can mitigate counterparty risk associated with any single platform. Additionally, the ability to trade on both CEX and DEX platforms allows managers to diversify their strategies, incorporating different levels of decentralization, regulatory environments, and security features.
  2. Arbitrage opportunities: Different venues often exhibit price discrepancies, presenting arbitrage opportunities. For example, managers can buy an asset on one exchange at a lower price and sell it on another where the price is higher, thus generating risk-free profits.
  3. Access to diverse liquidity pools: Multiple trading venues provide access to diverse liquidity pools, ensuring that managers can execute large trades without significantly impacting the market price.

Spot and derivatives markets (Variety of instruments)

The seamless integration of spot and derivatives markets within the digital asset space presents a considerable advantage for active managers. With substantial liquidity in both markets, they can implement sophisticated trading strategies and manage risk more effectively.

For instance, as of August 8 2024, Bitcoin (BTC) boasts a daily spot trading volume of $40.44 billion and an open interest in futures of $27.75 billion. Additionally, derivatives such as futures, options, and perpetual contracts enable managers to hedge positions, leverage trades, and employ complex strategies that can amplify returns.

Spot and derivatives markets graph
Source: Coinglass, Aug 16, 2024

Overall, the benefits for active managers include:

  1. Hedging and risk management: Derivatives offer a powerful tool for hedging against unfavorable price movements, enabling more efficient risk management. For instance, a manager holding a substantial amount of Bitcoin in the spot market can use Bitcoin futures contracts to safeguard against potential price drops, thereby enhancing risk control.
  2. Access to leverage: Managers can use derivatives to leverage their positions, amplifying potential returns while maintaining control over risk exposure. For instance, by employing options, a manager can gain exposure to an underlying asset with only a fraction of the capital needed for a direct spot purchase, thereby enabling more capital-efficient investment strategies.
  3. Strategic flexibility: By integrating spot and derivatives markets, managers can implement sophisticated strategies designed to capitalize on diverse market conditions. For instance, they may engage in volatility selling, where options are sold to generate income from market volatility, regardless of price direction. Additionally, managers can leverage favorable funding rates in perpetual futures markets to enhance yield generation. Basis trading, another strategy, involves taking offsetting positions in spot and futures markets to profit from price differentials, enabling returns that are independent of  market movements.

Exploiting market inefficiencies

Digital asset markets, being relatively nascent, are less efficient compared to traditional financial markets. These inefficiencies arise from various factors, including regulatory differences, market segmentation, and varying levels of market maturity. For example:

  1. Pricing anomalies: Phenomena like the "Kimchi premium," where cryptocurrency prices in South Korea trade at a premium compared to other markets, create arbitrage opportunities. Managers can exploit these by buying assets in one market and selling them in another at a higher price.
  2. Exploiting mispricings: Active managers can identify and capitalize on mispricings caused by market inefficiencies, using strategies such as statistical arbitrage and mean reversion.

The unique aspects of the digital asset market structure create an exceptionally conducive environment for active management. Continuous trading hours and diverse venues provide the flexibility to react quickly to market changes, ensuring timely execution of trades. The availability of both spot and derivatives markets supports a wide range of sophisticated trading strategies, from hedging to leveraging positions. Market inefficiencies and pricing anomalies offer numerous opportunities for generating alpha, making active management particularly effective in the digital asset space. Furthermore, the ability to hedge and manage risk through derivatives, along with exploiting uncorrelated performance, enhances portfolio resilience and stability.

In our next article, we'll delve into the various techniques active managers employ in the digital asset markets, showcasing real-world use cases.

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