Lamar Olive Oil has launched the first on-chain bond for the sustainable agriculture industry using Switzerland-based DeFi (decentralized finance) platform Obligate. On June 1st, Obligate made the announcement.
The on-chain bond is Membrane Finance’s first bond denominated in EUROe stablecoin. According to Membrane Finance, EUROe is the only stablecoin that complies with EU regulations.
Underwriting, offering and structuring, including credit evaluation and ongoing risk monitoring, were performed by Credora, Obligate’s credit rating partner.
Based on the Polygon blockchain, Obligate helps SMEs by providing a secure and transparent way to issue, track and settle bonds. Lowering the threshold for bond issuance will give companies in developing and emerging markets more access to financing.
Smart contracts replace the roles of issuer and paying agent in the settlement layer of traditional bond issuance in on-chain bonds (digital bonds).
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Pixabay
｜Original: Olive-Oil Producer Issues First Euro-Stablecoin-Denominated Bond on Obligate’s DeFi Platform