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 in a recent press interview.
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.
The structuring process and underwriting, as well as credit evaluation and ongoing risk monitoring was executed by Obligate’s credit rating partner Credora, the company stated
Obligate, which is built on the Polygon blockchain, assist small and medium-sized enterprises by making available a safe and transparent way of issuing, tracking and settling debt, and with the thresholds to issue bonds lowered, companies in developing and apparent infant markets can gain increased access to finance.
Smart contracts restore the role of the issuer and financing agent in the settlement layer of a traditional bond issuance.