Lamar Olive Oil, a sustainable-agriculture company, has achieved a significant milestone in the industry by issuing an on-chain bond using Obligate, a decentralized finance (DeFi) platform based in Switzerland. This groundbreaking move marks the first-ever issuance denominated in Membrane Finance’s EUROe, the sole EU-regulated crypto stablecoin.
Underwriting and Structuring Process
Obligate’s credit rating partner, Credora, facilitated the underwriting and structuring process for Lamar Olive Oil’s bond. This comprehensive process involved credit evaluation and continuous risk monitoring to ensure the bond’s reliability and security.
Obligate: Empowering Small and Medium-Sized Enterprises
Built on the Polygon blockchain, Obligate offers a safe and transparent platform that empowers small and medium-sized enterprises (SMEs) to issue, track, and settle debt. With lowered thresholds for bond issuance, companies in developing and emerging markets gain increased access to funding, fueling growth and innovation.
Smart Contracts Revolutionize Bond Issuance
In a revolutionary shift, smart contracts replace the role of the issuer and paying agent in the settlement layer of traditional bond issuance. This cutting-edge technology enhances efficiency, security, and transparency in the bond issuance process, eliminating the need for intermediaries and reducing costs.
Lamar Olive Oil’s issuance of the first Euro-Stablecoin-Denominated Bond on Obligate’s DeFi Platform showcases the tremendous potential of blockchain-based solutions in the sustainable-agriculture industry. With EUROe’s status as the EU-regulated crypto stablecoin and Obligate’s robust ecosystem, this pioneering move sets a precedent for future financial innovations in the DeFi space.