Tag: Trading

How SBLC monetisation supports international trade

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Key insights for global trade in 2026

  • Liquidity in trade: SBLC monetisation bridges the gap between procurement and payment, offering a high-speed alternative to traditional international trade finance solutions.
  • Risk mitigation: Utilising an SBLC can reduce default risk percentage in commodity trades, providing a secondary payment mechanism that secures the supply chain.
  • Capital efficiency: By leveraging off-balance-sheet instruments, firms can achieve an optimal capital structure that balances debt and equity without exhausting traditional credit lines.

How does SBLC monetisation work for international trade?

In international trade, SBLC monetisation works by converting a standby letter of credit into an immediate line of credit or cash injection. A trader or company provides the SBLC as collateral to a monetiser or specialised lender. The lender then advances a high percentage of the instrument’s face value (LTV), allowing the trader to pay suppliers or cover logistical costs upfront before the final goods are sold or the primary payment is received.

The role of SBLC in global transaction banking

How do international banks offer trade finance solutions? 

International banks provide trade finance through a variety of structured instruments designed to facilitate cross-border movement of goods. In the realm of SBLC global transaction banking, these institutions act as the issuing or confirming banks. They issue the SBLC to prove the buyer’s creditworthiness, which the buyer then takes to a third-party monetiser to unlock the working capital required to execute the trade.

Comparing types of letters of credit in international trade

Understanding the nuances of SBLC trade finance requires distinguishing it from other common instruments. While they all aim to secure trade, their utility in monetisation varies:

Type of instrumentPrimary purposeMonetisation potential
Commercial LCPrimary payment mechanism for goods.Low (typically used for direct payment).
Standby LC (SBLC)Secondary payment/guarantee of performance.High (excellent as loan collateral).
Revolving LCCovers multiple transactions over time.Moderate (based on individual draws).
Back-to-back LCUsing one LC to open another for a supplier.Moderate (transaction-specific).

Optimising the trade-off theory: Optimal capital structure

For large-scale importers and exporters, the trade-off theory of optimal capital structure is a critical consideration. This theory suggests that a firm should balance the tax benefits of debt against the costs of potential financial distress.

By using SBLC monetisation, companies can access debt-like liquidity (the cash payout) without the heavy financial distress markers of a standard bank loan. This allows firms to maintain a leaner balance sheet while funding massive commodity shipments, effectively reaching their optimal structure by using a bank guarantee as a flexible funding bridge rather than a rigid long-term debt.

Reducing default risk in commodity trades

One of the most significant hurdles in 2026’s volatile market is the risk of non-performance. Statistics indicate that an SBLC can reduce default risk percentage in commodity trades by providing an ironclad guarantee of payment. If the buyer fails to meet their contractual obligations, the seller can call the SBLC. This security is what allows monetisers to offer high LTVs—they are not lending against the trader’s business history, but against the credit rating of the bank that issued the SBLC.

Frequently asked questions

What is the advantage of SBLC trade finance over a bank loan?

SBLC trade finance is typically faster to secure and does not always require the same level of hard-asset collateral as a traditional loan. It allows traders to use the “credit of the bank” rather than their own personal or corporate credit to secure high-value funding.

Can an SBLC be used for any type of international trade?

Yes, it is most commonly used in high-value commodity trades (oil, gas, minerals, and grains) where the SBLC reducing default risk percentage is a priority for the seller and the logistical costs are high for the buyer.

Is SBLC monetisation considered debt?

In the context of the trade-off theory, it is a form of credit. However, because it is secured by a bank instrument and often structured as a non-recourse payout, it is frequently treated more favorably on a company’s financial statements than a standard term loan.

Ready to accelerate your global trade operations with liquid capital?

Discover how our specialised monetisation strategies can transform your bank instruments into immediate working assets. Contact IntaCapital Swiss today for a consultation. 

Plan B for Trump Tariffs

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The Section 301 Pivot: A New Framework for Trade Enforcement

Acting on behalf of President Trump, the U.S. Trade Representative is launching Section 301 investigations into more than twelve major economies. Jamieson Greer, the U.S. Trade representative, stated that this action takes centre stage to replace the tariffs, which were struck down by the Supreme Court of the United States* and will focus on those economies that have alleged excess manufacturing capacity. Upon completion of the investigations, President Trump will be allowed to unilaterally place tariffs on those countries who are deemed to engage in unfair trading practices.

*Supreme Court Ruling – In a landmark 6–3 decision on Friday, February 20, 2026, the Supreme Court struck down President Trump’s global tariffs. The justices ruled that the President exceeded his constitutional authority by invoking a federal emergency-power law to unilaterally impose the levies.

Navigating Post-Ruling Volatility: The Administration’s Strategic Shift

These investigations are the administration’s attempt to replace the tariffs that were struck down by the Supreme Court in February this year. The landmark decision took away a central pillar of the Trump presidency, whereby the President could unilaterally impose tariffs and use them as leverage in negotiations with many countries, especially those who are key trading partners. Jamieson Greer also stated, “Our view is that key trading partners have developed production capacity that is really untethered from the market incentives of domestic and global demand.”

Geopolitical Risk: Major Trading Partners Under the Microscope

Economies that are under the microscope are China, the EU (European Union), India, Japan, Mexico, South Korea and Taiwan, all of whom represent some of the largest and leading trading partners. Experts predict that by targeting Mexico, the US-Canada-Mexico Trade Agreement that is currently under renegotiation could make existing tensions even worse. Interestingly, Canada is not among any of the nation’s being targeted by the administration’s new tariff drive, however, with an impending summit between the US and Beijing coming up shortly, the new tariff drive could well increase tensions between the two countries.

Sector-Specific Vulnerabilities: Addressing Global Overcapacity

In a Federal Register filing, the Office of the United States Trade Representative (USTR) alleges that the above-mentioned economies enjoy overcapacity. The filing singles out the EU, especially Ireland and Germany, regarding machinery, vehicles, and chemicals, while accusing Taiwan of overproduction in the semiconductor chips and electronics sectors.

The USTR is also citing examples of non-US firms expanding overseas, in particular the Chinese auto maker BYD Co. They continued by stating the other sectors that have over capacity, which are: aluminium, automobiles, batteries, electronics, machinery, paper, plastics, robotics, satellites, semiconductors, ships, solar modules and steel. 

The Future of Trade Policy: Implications for Global Supply Chains

With regard to the abovementioned sectors in the same Federal Register Filing, officials from the USTR have said, “In many of these sectors, the United States has lost substantial domestic production capacity or has fallen worryingly behind foreign competitors.” 

Experts suggest that the new wave of investigations has signalled an increase of trade enforcement, furthermore, the administration will be launching investigations on circa sixty countries relating to a ban on imports that are made with forced labour. Experts predict that the White House will continue down the tariff road with such expectations being borne out by Jamieson Greer, who has said, “The policy remains the same. The tools may change, depending on the vagaries of the courts and other things, but the policy remains the same.”

Unlock Global Trade: Your Guide to Cash Flow Lending for High-Volume Importers

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For Traders / Importers, the lifeblood of business is the movement of goods, but the greatest financial pressure is the time lag between paying the supplier and receiving payment from the customer. Cash Flow Lending is a specialised financial solution designed to bridge this crucial timing mismatch, ensuring Working Capital is readily available to maintain momentum.

For high-volume importers who lack significant fixed assets, this type of flexible funding is essential for maintaining robust operations and capitalising on large Trade Finance opportunities.

The Importer’s Core Challenge: Inventory and Time

A traditional importer faces two primary timing risks that create a severe Liquidity Gap:

  1. Advance Payment: Suppliers often demand payment upon shipment or before the goods even arrive in the warehouse.
  2. Credit Sales: The importer must then sell those goods to distributors or retailers, often extending 30- to 90-day credit terms to secure the sale.

Cash Flow Lending focuses on funding this interim period—the time the importer is waiting for customer payments—by assessing future projected revenues rather than relying heavily on the present value of tangible assets. This is the core function of Trade Finance that addresses the Liquidity Gap.

The Trade-Off: Unsecured vs. Secured Cash Flow

In the financial sector, Cash Flow Lending often carries higher interest rates than asset-based loans because it is typically unsecured, meaning the lender relies solely on the business’s future financial performance (EBITDA).

Type of Cash Flow LendingBasis for ApprovalAssociated Risk
UnsecuredFuture Cash Flow / Revenue ProjectionsHigher interest rates, shorter repayment terms (often 6-12 months).
Secured (Asset-Based)Value of physical assets (inventory, receivables)Lower rates, but assets are encumbered and at risk.

For high-volume Traders / Importers seeking millions in flexible Working Capital, the risk of high rates (unsecured) or asset encumbrance (secured) can severely undermine the profitability of the trade.

Collateral Transfer: De-Risking Trade Finance

For Traders / Importers who need large, competitive credit facilities without risking their balance sheet, the Collateral Transfer Facility offers a strategic way to optimise Cash Flow Lending.

Collateral Transfer introduces a high-grade, institutional External Security instrument (such as a Bank Guarantee or SBLC) into the funding structure, which can be utilised to secure a credit line or revolving facility from a lending bank.

This approach achieves three vital objectives for trade businesses:

  1. Non-Dilutive Capital: It provides capital without sacrificing equity, allowing the importer to retain full control.
  2. Competitive Rates: By providing institutional security, the importer can access Cash Flow Lending at competitive rates usually reserved for asset-backed deals, while keeping their core assets unencumbered.
  3. Scalable Working Capital: The facility can be structured for large volumes, ensuring that the availability of Working Capital grows in lockstep with the importer’s high-volume trade pipeline.

We specialise in arranging external security to facilitate large-scale Trade Finance and Cash Flow Lending for global Traders / Importers, ensuring that the liquidity you need is secured quickly and competitively.

Fuel Your Global Trade Volume

IntaCapital Swiss empowers Traders / Importers to bridge the Liquidity Gap and scale their operations.

Don’t let cash flow timing limit your trading volume. Contact our experts today to secure the financial backing required for high-volume trade.

The Executive’s Guide to Standby Letters of Credit: Securing Trade & Finance

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For global enterprises, a Standby Letter of Credit (SBLC) is the ultimate mechanism for Risk Mitigation. Unlike a commercial letter of credit, which is intended to be the primary payment method, an SBLC is a secondary instrument—a powerful safety net that secures a financial obligation in the event of a buyer’s default.

Understanding the strategic application of the SBLC is crucial for managing Collateral Management and unlocking flexible capital access in International Trade.

What is a Standby Letter of Credit (SBLC)?

An SBLC is a legal document issued by a bank or financial institution that guarantees the issuer will fulfill a non-payment obligation by a client. It assures the beneficiary (typically the seller or lender) that they will receive payment up to a specified amount if the client (the buyer or borrower) fails to meet the terms of the underlying contract.

  • Payment of Last Resort: The SBLC is ideally never drawn upon and is intended as a back-up if the client defaults. Its mere existence provides the credit assurance needed for a deal to proceed.
  • Contingent Liability: For the issuing bank, the obligation only exists contingently. This fact provides strategic financial benefits for the client, as the SBLC is generally not treated as immediate debt on their balance sheet, though specific accounting treatment depends on the applicable GAAP/IFRS interpretations.

Dual Roles: Securing Trade vs. Securing Finance

The flexibility of the SBLC allows it to serve two principal, high-value functions:

1. Securing Trade (Performance Risk)

In International Trade, the SBLC typically guarantees a contractual performance:

SBLC TypeGuarantee ProvidedExample
Performance SBLCGuarantees non-financial obligations (e.g., project completion).Assures a developer that a contractor will finish a building on time.
Advance Payment SBLCGuarantees repayment of a deposit if the seller fails to perform.Assures an importer their upfront payment will be returned if the exporter fails to ship.

2. Securing Finance (Credit Risk)

When dealing with Collateral Management and funding, the SBLC acts as verifiable security:

  • Credit Enhancement: A high-grade SBLC can be used to secure a loan or credit line from a third-party lender. The SBLC acts as collateral, substantially mitigating risk for the lender and leading to more competitive lending terms.
  • Collateral Transfer: When a company lacks sufficient internal security, they can access an SBLC (or Bank Guarantee) through a Collateral Transfer facility, which is the correct term for what is sometimes erroneously called “leasing.”

SBLC, BG, and Risk Mitigation

The SBLC is governed by international banking protocols, typically either the Uniform Customs and Practice for Documentary Credits (UCP 600) or the International Standby Practices (ISP98).

The distinction between an SBLC and a Bank Guarantee (BG) is often jurisdiction-based, but functionally, they both achieve the same objective: providing Risk Mitigation and third-party credit assurance. The successful usage of both instruments in Collateral Management and cross-border trade hinges on correct documentation under these standards and verifiable delivery via SWIFT MT760.

IntaCapital Swiss specialises in providing access to these instruments through our structured facilities, ensuring they are correctly documented and delivered via SWIFT, which is paramount for both successful monetisation and Bank Guarantee facilities.

By leveraging an SBLC, businesses gain a powerful, recognised instrument that supports trade expansion and ensures secure Capital Access without relying solely on their existing asset base.

Ready to Enhance Your Financial Security?

IntaCapital Swiss offers expert access to SBLC and Bank Guarantee facilities, providing tailored solutions for Risk Mitigation in trade and finance.

Don’t wait for capital. Your next major project needs verifiable security now. Contact our experts today to unlock the power of the MT760 and secure your bespoke funding solution.

Global Payments Decoded: What is a MT-103 and Why It Matters for Importers

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For Importers and international traders, the movement of goods relies entirely on the guaranteed movement of capital. In this intricate world of cross-border commerce, the MT-103 is one of the most important payment messages in cross-border trade.

Understanding the function and finality of this single SWIFT Message is essential for Corporate Liquidity management and streamlining your Trade Finance operations.

What is a SWIFT MT-103 Message?

The MT-103 is a standardised SWIFT Message used specifically for a single customer transfer.

It is a specific instruction sent by one financial institution to another, requesting that a fixed, named amount of money be transferred to a specific beneficiary. Because of its globally standardised format and routing via the SWIFT Network, the MT-103 is universally accepted and recognised as the gold standard for secure, reliable Cross-Border Payments.

Key Characteristics of the MT-103:

  • Fungibility: It handles only one payment from one ordering customer.
  • Standardisation: It follows a strict, numbered field format, ensuring automated processing and minimising error.
  • Finality of Payment: Once processed and credited, the payment is generally treated as final and is very difficult to reverse, which underpins trust in international trade.

Why the MT-103 is Crucial for Importers

For Importers, the timely and confirmed issuance of the MT-103 is vital because it directly mitigates execution risk and impacts Capital Access timing:

  1. Proof of Payment: The MT-103 acts as definitive proof that the buyer’s bank has successfully sent the funds. This confirmation is often required by the supplier to release goods from customs or commence shipping.
  2. Trade Security: The message provides Finality of Payment. Once confirmed, the seller is secure in the knowledge that funds are irrevocably moving, preventing disputes and allowing the transaction to proceed smoothly.
  3. Liquidity Forecasting: Since the message confirms the date and amount of funds, it enables accurate Corporate Liquidity forecasting, allowing importers to manage cash flow and plan subsequent transactions effectively.

The Critical Link: MT-760 (Security) vs. MT-103 (Payment)

While the MT-103 is the instruction to pay the funds, it is frequently the Collateral Transfer facility that makes the payment possible or secure in the first place.

This is the distinction that matters most in Structured Finance:

  • SWIFT MT-760 (The Guarantee): This message is used to transfer a Bank Guarantee (BG) or Standby Letter of Credit (SBLC), which acts as Collateral or security. The BG is not a payment, but a non-cash instrument that guarantees the importer’s line of credit.
  • SWIFT MT-103 (The Instruction): This message is the cash payment instruction, often funded by the line of credit secured by the MT-760 BG.

Essentially, a BG or SBLC issued via MT-760 can secure the importer’s credit line, which the bank then uses to fund MT-103 payments. This strategic use of security to facilitate payments ensures Capital Access is not hindered by perceived credit risk.

Ready to Optimise Your Trade Finance?

Speed and certainty in Cross-Border Payments are achieved through superior structure and dedicated Liquidity Management.

IntaCapital Swiss provides specialised Corporate Funding solutions that leverage high-grade instruments to ensure your Funding Timeline is predictable and your trade operations run without delay.

Ready to guarantee your payments and accelerate your global deals? To discuss enhancing your import security and ensuring timely global payments, contact our experts today.

Bond Investors Edging Towards Emerging Markets

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Investors in global bonds are eyeing a number of better-performing emerging markets, as they are currently a safer bet than their peers in the richer developed world, and some countries, such as South Korea, are delivering stronger returns. The strong performances seen in several emerging economies are due, according to experts, to governments cutting debt, improving their current account balances and getting to grips with inflation. Analysts also note that these economies have become attractive to bond investors due to a reversal of fiscal fortunes in industrial nations such as the Group of Seven* (aka the G7), where safe-haven status is eroding amid rising debt-to-output ratios.

*Group of Seven / G7 – This is an informal political forum for the leaders of seven advanced democratic economies, including Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Originally, it was known as the G8 until Russia was suspended in 2014 for the annexation of Crimea. The group meets annually to discuss and coordinate policy on major global issues such as economic governance, international security and climate change. The leader of the European Union (currently Ursula von der Leyen) has an unofficial seat at the table, enjoys all the privileges and is often dubbed the 8th member.

Analysts predict that at the close of business in 2025, and in terms of annual bond gains this year, it is set to be the strongest for emerging markets since the Covid-19 pandemic. Investors have become really impressed with a number of emerging market economies as they are now, for the first time in seven years, demanding the smallest premium over treasuries in the sovereign dollar-debt market. Indeed, for several AA-rated issuers, the spread has declined to an impressive 31 basis points, which in today’s world is a record and data released shows that, since the end of last year, average local currency debt yields have been below that of treasuries.

Experts advise that the ‘Carry Trade’ ** has become an influential tool in investing in local currency emerging market bonds, where low-interest rate volatility has favoured investment in this asset class. Sovereign and local bonds are not the only beneficiaries of the carry trade; currencies have also benefited, such as the Egyptian pound and the Nigerian Naira, both delivering 20% returns year-to-date when funded out of US Dollars. However, as one moves along the emerging market credit curve, the risk-to-reward ratio increases exponentially. Emerging market experts advise that political instability and debt distress are constant threats in a number of these economies and can be found mainly in Africa and Latin America. Also, for serious capital to be deployed, investors look to those countries with a sovereign risk of AA.

**Carry Trade – This is a financial strategy whereby an investor will borrow money at a low interest rate and invest in an asset with a higher interest rate with a view to profiting from the difference (known as the interest rate differential). Whilst this is mostly done in the foreign exchange markets, it is also applied to commodities, bonds and other assets.

However, according to analysts, there has been a palpable change in investment strategy in the emerging markets arena, with investors looking to commit directly to these economies without using the carry trade due to key macro fundamentals moving into favourable positions. It has also been noted that in the face of global trade and geopolitical dislocations, emerging markets have been resilient and have preserved fiscal governance, including balance of payments sustainability, resulting in inflows into the fixed income market, all of which is expected to continue into 2026.

Switzerland Close to Agreeing a Lower Tariff Rate with the United States

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The Swiss government is reportedly close to agreeing a reduced tariff rate of 15% with the White House. However, experts caution that no deal will be finalised without the explicit approval of President Donald Trump. Switzerland has been subjected to one of the highest tariffs — 37%, announced by President Donald Trump at the end of July this year and implemented on 7th August. The measure has posed a serious threat to key Swiss exports such as watches, precision machinery, pharmaceuticals, and chocolate, making them significantly more expensive in one of their largest markets compared with products from countries facing lower tariffs.

According to sources close to the negotiations, Swiss Economy Minister Guy Parmelin has maintained regular contact with U.S. trade authorities, including a constructive video conference last Friday with Jamieson Greer, the U.S. Trade Representative. Earlier this week, President Trump stated that he was “working on a deal” to reduce tariffs on Swiss exports to the United States, though he did not specify an exact rate.

Swiss officials have reportedly offered a package of investment proposals and pledges aimed at reducing the U.S. trade deficit. This includes greater market access for American energy firms in Switzerland, increased spending on U.S. defence equipment, and a commitment to expand gold refining capacity within the United States. Analysts suggest these concessions have paved the way for a possible breakthrough on tariffs.

In addition to official negotiations, when talks stalled in September, progress may have been revived by a charm offensive from prominent Swiss business figures — Rolex CEO Jean-Frederic Dufour, Cartier-owner Chairman Johann Rupert, and billionaire Alfred Ganter, co-founder of Partners Group, a key stakeholder in both Universal Genève and Breitling. Their visit to the Oval Office is believed to have improved the diplomatic tone, though it remained the task of Swiss officials to deliver a deal compelling enough to win over President Trump.

Analysts suggest that this potential agreement comes at a critical moment, as early signs indicate that high tariffs have begun to harm the Swiss economy. The Swiss National Bank recently stated that the economic outlook “has deteriorated due to significantly higher tariffs,” with unemployment rising to its highest level in four years. Financial commentators warn that tariffs are weighing on economic growth, with Q3 output (adjusted for sports events) expected to have contracted by 0.2%. Nonetheless, a 15% tariff would represent a highly positive development for Swiss industry, particularly the watch sector, given that the United States accounts for 19% of all Swiss watch exports.

Bitcoin Continues to Fall After October Crisis

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Yesterday, Tuesday 4th November, Bitcoin fell 7.4%, dropping below the $100,000 mark ($96,794) for the first time since 23rd June this year. Experts in the sector suggest that Bitcoin holders, as well as cryptocurrency investors in general, have been selling this risk-on asset amid growing concerns over current stock valuations, which have likely been driven to unsustainable heights by the Artificial Intelligence (AI) trade. Bitcoin has now fallen 20% from its record high reached in October. While there was some recovery earlier today in New York, traders in the options markets are, according to analysts, placing bets on further declines.

Analysts suggest that one reason for the latest fall in Bitcoin’s price is that long-term holders of the cryptocurrency have, over the last month, offloaded approximately 400,000 coins with a combined value of $45 billion. Unlike the forced leveraged selling seen last month, the current decline is more measured, representing a continued sell-off in the spot market. This price fall has also diverged from the usual pattern where bursts of volatility stem from liquidations in the futures market. Data released by CoinGlass — a cryptocurrency derivatives data analysis platform providing real-time information- shows that since yesterday morning, around $2 billion in crypto positions have been liquidated.

One market expert has stated that a market imbalance is emerging. As leverage remains relatively subdued, attention has turned to long-term holders who are now selling Bitcoin. There appears to be a growing disconnect between these long-term sellers and first-time buyers, which is shaping a market no longer driven solely by sentiment. Analysts have observed that since major holders with between 1,000 and 10,000 Bitcoins (so-called “mega-whales”) began offloading large portions of their portfolios, and since last month’s crash, overall demand has waned.

Other analysts, however, suggest that despite the absence of specific bad news, the market is fatigued and struggling under multiple pressures. There are ongoing concerns regarding the trade war, whether tariffs will hold, and whether the Supreme Court will decide if such tariffs are legal. Added to this are the continuing government shutdown, spiralling public debt, overpriced stocks, and caution over U.S. interest rates. Furthermore, one analyst commented that fundamentals remain weak across the board following last month’s major sell-off.

Market commentators remain divided over Bitcoin’s near-term future. One analyst suggested that now Bitcoin has fallen below the $100,000 threshold, it could drop as far as $70,000 before resetting and recovering. Others, however, believe that Bitcoin will gradually climb back if economic and geopolitical conditions improve, particularly if the United States-China trade talks yield a stable agreement. Despite a recent outflow from Bitcoin ETFs, experts remain broadly optimistic that fund managers could see gains over the coming months, though with fundamentals still fragile, Bitcoin’s price outlook remains uncertain.

The London IPO Market – Still in the Doldrums

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In Q1 and Q2 of this year, data released showed the London IPO market was down to just £182.8 million from nine raisings, as opposed to the same period in 2024, where eight IPOs raised £526.7 million, raising concerns that London is fading as a centre for global capital. Further data also showed that Q3 and Q4 of 2024 had only nine IPOs raising £258 million. Indeed, in April of this year, the market saw the most significant IPO for MHA, a professional services company that raised £98 million on AIM (Alternative Investment Market).

The City (City of London – the financial centre) is struggling to maintain its reputation as a centre and destination for high-growth listings as evidenced by reports suggesting that the CEO of AstraZeneca (pharmaceuticals) might well relocate their primary listing to the United States along with Wise (money transfer service), who with a valuation of £11 billion might also consider moving their listing to the United States as well. A further disappointment is Shein (Online fast fashion company), who were denied a London listing by the Chinese regulators, so they have opted for a listing in Hong Kong.

The above companies are just a part of a growing number of companies that have shelved listings in the city due to pushbacks from investors and challenges related to Brexit, which have negatively impacted valuations. As such, these companies have opted for listings not only in the United States but also in other markets where there are perceived higher valuations plus stronger investor appetite.

However, not all is doom and gloom as analysts report that the Labour government are making headway in reforming listing requirements, which it is hoped will help revive the market that headed south once the United Kingdom had left the European Union. However, 2026 should provide the biggest impetus in the London IPO market as there is a planned IPO by the software giant Visma valued at Euros 19 billion, and HG Capital is leaning towards the City for a listing, attracted by listing reforms, especially allowing euro-denominated stocks into flagship FTSE indexes.

Experts argue that out of all the European exchanges, London has been the hardest hit. However, in Q1 and Q2, bourses in Zurich, Milan, and Paris saw lower volumes than London, and overall Europe suffered its worst opening six months in IPO volumes. However, a large part of the problem has been President Trump’s tariffs, which unleashed a round of volatility which resulted in the market being shut for a while, delaying plans by issuers to go public. Analysts are hopeful of a rebound in 2026 with the new regulations attracting companies to the IPO market in London.

Bitcoin versus Altcoin – A Corporate Dilemma?

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For a while now, and just in the background, there has been a long-simmering feud between the advocates of Altcoin and the purists of Bitcoin as they compete to win the corporate treasury boom*. Indeed, many companies have been loading up their balance sheets with unheard of amounts of digital assets, and the debate has come to the fore as to which tokens belong on the balance sheet and just as important is why they should appear there. Basically, the argument between the two sides rests on the premise as to how value should be stored and also how it should be grown.

*Corporate Treasury Boom – In this year alone, in excess of one hundred companies have been formed and are known as digital-asset treasury companies (or DATS) and have been buying cryptocurrencies, some of whom are struggling with this high-risk strategy. The philosophy underpinning these companies is just to buy cryptocurrencies and thereby offer investors a way into the digital-asset boom while at the same time offering lucrative returns.

Those who side with Bitcoin feel companies should be built on the premise that ideological purity and a hard supply cap should be the only digital-asset to legitimately appear as a treasury asset on the balance sheet. However, Altcoin supporters are promoting an investment scenario premised on dynamic returns offering yield generating tokens such as Solana and Ether which can be built into portfolios. Altcoin are challenging the ethos that Bitcoin is the only digital-asset that belongs on a balance sheet, and data released suggest that today they are edging ahead in the battle.

Indeed, data shows that altcoin prices are rallying whilst other data shows the purchases of Bitcoin by the corporate treasury companies are on the decline. Figures recently released show that in June of this year purchases were circa 66,000, however in August just 14,800 Bitcoin were purchased. Elsewhere, total Bitcoin holdings have declined with the accumulation rate by treasury companies sliding to 8% in August down from a March high of 163% which can account for the average purchase size declining 86% from its peak earlier in the year to just 343 Bitcoin in August. 

Experts suggest that Altcoin, with their capacity and ability to be distributed throughout the decentralised finance markets**, are better placed to generate yield. This premise appears to be supported in the marketplace, as ,just recently, a USD 500 Million investment by Pantera Capital was secured by Helius to build a Solana based treasury. Indeed, while some senior players (notably pro-Bitcoin) have suggested that Ether or Ethereum is not the best asset by any means for a treasury company, data shows that some USD 16 Billion in Ether have been added to the balance sheets of treasury companies. 

**Decentralised Finance Market – This market, also referred to as DeFi, is a blockchain-based financial system that provides traditional financial services such as lending, borrowing, and trading without intermediaries such as banks or brokerages. It operates on public, permissionless blockchains utilising smart contracts to speed up and automate the process, enabling peer-to-peer transactions for participants in the network. The DeFi market focuses on replicating traditional financial services within the crypto-asset ecosystem, but through automated protocols rather than centralised institutions.

However, the total holdings of Altcoins are, according to data released, not really comparable to the holdings of Bitcoin treasuries which currently total circa USD 116 Billion. But the shift towards Altcoins has not gone unnoticed. The battle for which coin to support will continue with the ultimate prize being corporate investment in either Bitcoin or Altcoin treasury companies, however one CEO has ventured that the ultimate strategy is to have a digital asset company with a blend of both Bitcoin and Altcoin.

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