1. BITBILIHome
  2. Article

Olive-oil manufacturer makes history with on-chain bond issuance on Obligate

• 207 views

TL;DR Breakdown

  • Lamar Olive Oil makes history by issuing an on-chain bond on the Obligate DeFi platform using the EUROe stablecoin, becoming the first sustainable-agriculture company to do so.
  • Obligate facilitates the first bond issuance without banks involved on the Polygon blockchain, with Muff Trading AG serving as the issuer.
  • The adoption of blockchain technology in the bond market by companies like Lamar Olive Oil and the growing appeal of platforms like Obligate and Polygon showcase the increasing potential of decentralized finance (DeFi) in offering efficient and inclusive financing solutions.

Lamar Olive Oil, a French company in the sustainable-agriculture industry, has achieved a significant milestone by issuing an on-chain bond using Obligate, a decentralized finance (DeFi) platform. This groundbreaking move marks the first bond issuance denominated in Membrane Finance’s EUROe, the only EU-regulated crypto stablecoin. Credora, Obligate’s credit rating partner, conducted the credit evaluation and risk monitoring processes.

Advancing sustainable agriculture with on-chain bonds

Obligate, built on the Polygon blockchain, is revolutionizing the way small and medium-sized enterprises (SMEs) access funding by providing a secure and transparent platform for issuing, tracking, and settling debt. The platform’s technology and lowered thresholds for issuing bonds allow companies in developing and emerging markets to tap into increased funding opportunities.

Traditionally, the settlement of bond issuances relied on issuers and paying agents. However, Obligate’s smart contracts replace these roles in the settlement layer, offering a more efficient and automated process. This innovation benefits the sustainable-agriculture industry immensely, enabling companies like Lamar Olive Oil to leverage blockchain technology for seamless debt transactions.

In March, Obligate executed the first bond issuance without the involvement of banks on the Polygon blockchain. Muff Trading AG, a Swiss physical commodities trading boutique specializing in sourcing precious metals and raw materials from South America, was the issuer for this landmark transaction. The involved parties did not disclose the specific details regarding the size and terms of the debt issuance.

Obligate is also allowing companies to issue bonds and commercial papers using blockchain technology without relying on traditional banking institutions. The DeFi platform offers a compelling alternative for businesses seeking more efficient, streamlined financing options. The platform combines the benefits of smart contracts with regulatory compliance to ensure a secure and transparent environment.

Issuers on the Obligate platform undergo know-your-customer (KYC) checks to meet regulatory requirements. On the other hand, investors receive ERC-20 tokens in their crypto wallets, representing the bonds they have invested in. These tokens carry the right to receive payment at maturity or collateral in the event of default, providing a clear and secure structure for bondholders.

Polygon’s growing appeal for institutional capital

Obligate’s choice to utilize the Polygon blockchain, an Ethereum sidechain, highlights the increasing allure of the platform for institutional capital. This trend is further evidenced by the recent adoption of Polygon by investment-management firm Hamilton Lane, which opened tokenized funds on the blockchain. In addition, Clearpool, a DeFi debt protocol, plans to launch its institutional platform, Prime, exclusively on Polygon in the coming months.

The recent bond issuance by Lamar Olive Oil and the broader adoption of blockchain technology in the financial sector reflect the industry’s drive toward more efficient and inclusive financing solutions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Olive-oil manufacturer makes history with on-chain bond issuance on Obligate

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月6日 02:33
Next 2023年6月6日 04:03

Related articles

  • Revolutionizing NFTs: Introducing ERC-6551, the game-changing standard

    TL;DR Breakdown ERC-6551 is a new standard for token-bound accounts in the Ethereum ecosystem. It introduces a mechanism that associates tokens with specific accounts, allowing for enhanced functionality and use cases. Token-bound accounts enable tokens to be locked or restricted to a particular account, ensuring that they can only be used within specific conditions or parameters defined by the token issuer. The ERC-6551 standard provides a set of functions and events that enable token-bound accounts to interact with smart contracts and other accounts within the Ethereum network. What is the ERC-6551 that the NFT ecosystem has recently been buzzing about? Non-Fungible Tokens (NFTs) have revolutionized the world of blockchain-based digital assets, with the ERC-721 standard paving the way for an array of innovative use cases. However, the limited traceability of ERC-721 tokens remains a significant limitation. Hence, ERC-6551 is the most recent development in the world of NFTs. ERC-6551 is the Ethereum standard for token-bound accounts, which creates a smart contract wallet for every non-fungible token to make it more composable, dynamic, and interactive. Contents hide 1 Understanding ERC-6551 2…

    Article 2023年5月17日

  • Kenyan court declares Meta as the primary employer in its lawsuit

    TL;DR Breakdown A Kenyan court has ruled that Meta is the primary employer in a lawsuit. Analysts discuss the implications of the case on Meta and Sama. A recent ruling by a Kenyan court has declared that Meta, the parent company of Facebook, is the primary employer of content moderators involved in a lawsuit against the social media giant and its content review partner in Africa, Sama. The lawsuit, filed in March of this year by 184 moderators, alleged unlawful dismissal and claimed that Meta’s new content review partner on the continent, Majorel, had blacklisted them based on Meta’s instruction. The Kenyan court said the moderators were contracted to Meta Justice Byram Ongaya of Kenya’s employment and labor relations court watered down Meta’s attempt to distance itself from the case. The court determined that the moderators performed work for Meta using its technology, adhered to its performance and accuracy metrics and that Sama was merely an agent or manager acting on behalf of Meta. Sama, on the other hand, disputed this claim, stating that it is a client of Sama’s…

    Article 2023年6月8日

  • AI will propel S&P 500 profits by 30% – How?

    TL;DR Breakdown Goldman Sachs’ senior strategist, Ben Snider, predicts a 30% surge in S&P 500 profits over the next decade due to AI-driven productivity increases. OpenAI’s ChatGPT has fueled interest in AI’s potential to disrupt everyday life and drive profit growth, particularly amidst current challenges like supply chain issues and rising borrowing costs. While tech companies are the obvious immediate winners of AI’s rise, Snider believes the long-term winners could come from other sectors. He recommends diversifying investments across sectors, highlighting energy and healthcare as particularly attractive. Artificial Intelligence (AI) has been making waves in multiple industries, and its transformative potential isn’t lost on Wall Street. As per Goldman Sachs’ senior strategist Ben Snider, AI’s capacity to spur productivity might directly translate into a 30% surge in S&P 500 profits over the upcoming decade. AI: A boon for S&P 500 AI, which has been developing rapidly, is now at a point where it can markedly enhance productivity, a cornerstone of corporate profits. This technology isn’t just a novelty; it’s a game-changer for investors and corporations. Over the next decade, Goldman…

    Article 2023年5月19日

  • Market expectations: How the Federal Reserve Rate decision could impact ETH price

    TL;DR Breakdown Market analysts anticipate that the Fed announcement will positively impact the price of ETH to above $2,000. Staking activity in the Ethereum ecosystem rose in June 2023 after reaching an all-time high in May. The ongoing SEC crypto crackdown has negatively affected the entire market, and there remain no guidelines. Ethereum has shown resiliency in the face of market volatility, stabilizing at a price of roughly $1,750 due to increasing staking activity. The Federal Reserve (Fed) Rate announcement that will be made soon will impact the price movement of ETH. Additionally, the legal environment and market trends are impacting how well specific cryptocurrencies are performing. How will the Fed Rate announcement affect the price movement of ETH?  According to market reports, Ethereum price has stabilized at roughly $1,750, down 3% from last week’s peak, amid heightened market instability. An in-depth examination of the on-chain data reveals that ETH has been spared a significant retracement due to increasing staking activity.  In contrast to the 13% fall in the market capitalization of all altcoins, ETH’s price has exhibited remarkable resiliency…

    Article 2023年6月16日

  • China’s demand crisis sparks global economic fear

    TL;DR Breakdown China’s weakening demand is a major concern at the G20 summit. President Xi Jinping’s absence from the summit is notable, with Premier Li Qiang representing. China’s economic fragility doesn’t majorly affect other big economies directly due to its self-sufficiency. Description It’s hard to shake the feeling of impending economic doom when China’s chronically flagging demand sits squarely at the forefront of global economic issues. This looming crisis casts a large shadow on the G20 summit in New Delhi. While the world leaders gather, aiming to dissect and manage global financial intricacies, China’s president, Xi Jinping, … Read more It’s hard to shake the feeling of impending economic doom when China’s chronically flagging demand sits squarely at the forefront of global economic issues. This looming crisis casts a large shadow on the G20 summit in New Delhi. While the world leaders gather, aiming to dissect and manage global financial intricacies, China’s president, Xi Jinping, is notably absent. Instead, Premier Li Qiang takes the helm, emphasizing the limited leverage other nations might have if China seeks refuge in global demand….

    Article 2023年9月8日
TOP