Historically, generating yield on Bitcoin was difficult, as returns were mainly reliant on price appreciation, but new models like derivatives and staking are now providing alternative income opportunities.

Other companies entering the Bitcoin yield market include Hilbert Capital, Purpose Investments, and NEOS, along with Coinbase, which launched its Bitcoin Yield Fund in April 2025.

This collaboration marks a significant moment for the integration of crypto into private banking, reflecting a shift towards active yield strategies within a regulated framework.

XBTO has partnered with Arab Bank Switzerland to introduce a Bitcoin yield product tailored for the bank's wealth management clients, signaling a notable shift towards institutional interest in BTC yield solutions.

This regulated product, based in Bermuda, has demonstrated annualized returns of around 5% with relatively low volatility, catering to the increasing demand for sophisticated yield solutions.

Ryan Chow, CEO of Solv Protocol, noted a significant rise in institutional interest in Bitcoin yield products, allowing institutions to earn yield without liquidating their Bitcoin assets.

Since 2019, Arab Bank Switzerland has been providing Bitcoin custody services, and this new yield product could encourage other banks to explore similar offerings.

However, potential risks associated with Bitcoin yield products include impermanent loss, regulatory uncertainty, market volatility, and issues related to smart contracts.

Romain Braud, head of digital assets at Arab Bank Switzerland, highlighted the growing client demand for effective risk management strategies to generate yield on Bitcoin holdings.

The product incorporates XBTO's proprietary 'diamond-hands' strategy, which focuses on selling Bitcoin options to earn premiums while accumulating Bitcoin during market downturns.

XBTO's strategy receiving recognition from a traditional Swiss private bank enhances its legitimacy in the cautious financial sector regarding unregulated crypto products.

Javier Rodriguez-Alarcon from XBTO emphasized the necessity for advanced investment solutions to meet the evolving demands of institutions for digital assets.