Obligate, the DeFi on-chain bond platform on Polygon, announced that olive oil producer Lamar Olive Oil used Obligate for the first time to issue an on-chain bond for the sustainable agriculture industry.
The corporate bond is the first EUROe-denominated issue of Membrane Finance, which the company says is the only EU-regulated cryptocurrency stablecoin, and said the underwriting and structuring process, including credit assessment and ongoing risk monitoring, was managed by Obligate’s Credit Ratings partner Credora conducts.
Obligate is built on the Polygon chain to help small and medium-sized enterprises issue, track and settle debt by providing a safe and transparent way, and as the threshold for issuing bonds is lowered, companies in developing countries and emerging markets can obtain more income and access to funds.
Smart contracts replace the roles of issuers and payment agents in the settlement layer of traditional bond issuance.