XBTO Partners Arab Bank Switzerland for 5% Bitcoin Yield Product

XBTO, a crypto investment firm and liquidity provider, has partnered with Arab Bank Switzerland to introduce a Bitcoin yield product for the bank’s wealth management clients. This collaboration is a response to the increasing institutional demand for Bitcoin yield products, which offer alternative sources of income beyond price appreciation.

The new product employs XBTO’s proprietary “diamond-hands” strategy, an approach used in the company’s Bitcoin yield fund. This strategy involves selling BTC options to earn premiums while seeking to accumulate Bitcoin during market dips. The product, regulated in Bermuda, has reported annualized returns of around 5% with relatively low volatility. This strategy is designed to generate yield from idle Bitcoin holdings while also accumulating Bitcoin during market downturns.

Javier Rodriguez-Alarcon, chief investment officer and head of digital asset management at XBTO, emphasized the need for sophisticated solutions that go beyond simple exposure to digital assets. He stated, “The maturation of institutional digital asset demand requires sophisticated solutions that go beyond simple exposure.”

Romain Braud, head of digital assets at Arab Bank Switzerland, noted the growing demand from wealth management clients for ways to generate yield on their Bitcoin holdings within a properly managed risk framework. He said, “We have seen growing demand from our wealth management clients for ways to generate yield on their Bitcoin holdings within a properly managed risk framework.”

This partnership marks a significant step in the integration of cryptocurrency into mainstream private banking. While institutions have begun to explore custody and token exposure, few have ventured into active yield strategies within a regulated, client-facing structure. For Arab Bank Switzerland, this development builds on its existing Bitcoin custody services, which have been available since 2019 through a partnership with Taurus. The introduction of this yield product could prompt competitors to follow suit, further accelerating the adoption of cryptocurrency within private banking.

XBTO, known for its institutional digital asset management, has solidified its role as a bridge between institutional crypto strategies and traditional wealth management. The firm's "Diamond Hands" strategy has now received the endorsement of a Swiss private bank, providing a rare stamp of legitimacy in an industry that remains cautious about unregulated crypto products. This collaboration not only meets the growing demand for yield-generating cryptocurrency products but also ensures that these products are offered within a comprehensive regulatory framework, providing institutional clients with a secure and reliable investment option.

While Bitcoin yield products offer a tool to build an income stream, they also entail risks. These risks include impermanent loss, lack of regulatory clarity, market volatility, and problems within smart contracts. Some companies also betting on Bitcoin yield products include Hilbert Capital, through its Bitcoin Yield Solution, Purpose Investments, with its Purpose Bitcoin Yield ETF, and NEOS via its Bitcoin High Income ETF. Coinbase also launched its Coinbase Bitcoin Yield Fund in April 2025.