• Lamar Olive Oil issued a bond on the Obligate DeFi platform that is denominated in Membrane Finance’s EUROe, a EU-regulated crypto stablecoin.
• The underwriting and structuring process, including credit evaluation and ongoing risk monitoring was conducted by Obligate’s credit rating partner Credora.
• This debt sale was the first of its kind for the French sustainable agriculture business.
Lamar Olive Oil Issues Bond Using Obligate
Lamar Olive Oil has issued an on-chain bond using Obligate in a first for the sustainable-agriculture industry, the Switzerland-based decentralized finance (DeFi) platform said Thursday. The French company’s bond is the first issuance to be denominated in Membrane Finance’s EUROe, which the company says is the only EU-regulated crypto stablecoin.
Underwriting and Structuring Process Conducted by Credora
The underwriting and structuring process, including credit evaluation and ongoing risk monitoring was conducted by Obligate’s credit rating partner Credora, the company said. This debt sale was the first of its kind for the French sustainable agriculture business.
Debt Sale Lowers Thresholds For Issuing Bonds
Obligate, which is built on the Polygon blockchain, helps small and medium-sized enterprises by providing a safe and transparent way of issuing, tracking and settling debt. With lowered thresholds to issue bonds companies in developing and emerging markets can gain increased access to funding. Smart contracts replace the role of issuer and paying agent in traditional bond issuance settlement layer.
Benefits of Blockchain Meets Bonds
By using blockchain technology companies can have more control over their capital markets transactions while reducing costs associated with middlemen such as banks or brokers. It also provides more transparency into how money flows through capital markets transactions while eliminating manual processes that are prone to error or fraud.
In conclusion this debt sale marks a significant milestone for Lamar Olive oil as well as for decentralized finance platforms like Obligate that provide alternative ways for businesses to access funding they may not otherwise have access to via traditional lending methods. Through smart contracts companies can reduce transaction costs while increasing transparency into their capital markets transactions creating more favorable conditions for both investors and issuers alike