What Is a Bitcoin-Denominated Bond? Smarter Web and TOBAM’s $21M Deal

The UK-listed Smarter Web Company has become the first in the financial market to issue a Bitcoin-denominated bond at $21 million. The financial product is secured by the full backing of institutional investor TOBAM, which previously showed interest in BTC and digital asset investments early on.

Smarter Web company announces issue of $21M Bitcoin bond fully backed by TOBAM . This demonstrates the way that cryptocurrency is gradually infiltrating conventional finance, particularly following the April 2025 crypto asset rules in the UK, surrounding crypto-linked financial products clearly.

What is a Bitcoin-Denominated Bond?

It is a loan in which the amount borrowed is pegged to BTC rather than conventional currencies such as the pound or dollar. It allows companies to raise funds and enables investors to benefit from the performance of BTC, but it is more risky because of the volatility of crypto.

Source: X

Why S marter Web Issued Bond?

The convertible bond can be distinguished for several reasons:

• It is priced in BTC, as opposed to GBP or regular USD.

• It is a zero-coupon bond, i.e., it does not pay interest over its life.

• It can be converted into equity (company shares) at a 5% premium by the investors.

• The exposure is limited to 30% of the proceeds that can be used to purchase BTC.

Such a structure is novel in the UK and demonstrates how businesses are attempting to incorporate crypto and conventional investment instruments.

Who invested in Smarter Web Bitcoin Bond of $21 Million?

TOBAM, an institutional investor in France, has fully subscribed to the entire Bitbond of $ 21 million . This is an indication of increasing institutional interest. P articularly, in cases where regulated entities such as Smarter Web Company are involved.

Source: Official Smarter Web Company Website

In 2023, Smarter Web Company had already developed a Bitcoin treasury policy . This implies that they had already made a decision to hold a part of their financial reserves in BTC. The new plan is quite compatible with the long-term goals.

Further, the financial measures that the company has undertaken in the recent past indicate that it is attempting to handle risk management prudently, as well as seek growth in digital asset exposure.

Why This Matters for the Crypto and Financial Markets

The action is significant to crypto markets and conventional finance. It might stimulate other companies to raise funds with crypto in such ways.

Experts feel that this may:

• Increase the institutional money in cryptocurrencies

• Open new avenues of portfolio diversification

• Exercise the performance of these instruments over time

But risks are there as well. According to a study in the Journal of Financial Economics (2023), Bitcoin-denominated bonds are too new. That's why too much historical data is unavailable to gain a complete picture of what their risks entail. This renders them experimental, particularly at the time of BTC price volatility.

UK First Bitcoin Bond 2025

This follows the country's launch of new crypto regulations in April 2025, which simplified the issuance of crypto-linked financial products by firms. The recent effort to introduce clear regulations in the UK is encouraging traditional firms to consider blockchain-based finance. This is also in line UK government's aim of being a global centre of crypto innovation, but with investor protection.

Another milestone achieved by Smarter Web Company and supported by TOBAM. The popularity may influence other companies' ways of dealing with crypto-financed tools in the future