• Lamar Olive Oil has issued an on-chain bond with Obligate using Membrane Finance’s EUROe, a EU-regulated stablecoin.
• The underwriting and structuring process was conducted by Obligate’s credit rating partner Credora.
• This is the first time that a sustainable agricultural business has issued an on-chain debt sale.
Lamar Olive Oil Issues Euro-Stablecoin Bond
French sustainable agriculture business Lamar Olive Oil has issued an on-chain bond using Switzerland-based decentralized finance (DeFi) platform Obligate. The bond is denominated in Membrane Finance’s EUROe, the only EU regulated crypto stablecoin.
Underwriting and Structuring Process
The underwriting and structuring process of this debt sale was conducted by Obligate’s credit rating partner Credora, which includes credit evaluation and ongoing risk monitoring.
Lowering Thresholds for Issuance
Obligate is built on the Polygon blockchain, helping small and medium sized enterprises by providing a safe and transparent way of issuing, tracking and settling debt. By lowering the thresholds to issue bonds, companies in developing and emerging markets can gain increased access to funding as well.
Smart Contracts Replacing Issuer & Paying Agent
Smart contracts now replace the role of the issuer and paying agent in the settlement layer of traditional bond issuances. This blockchain technology can help to solve long standing issues within capital markets as well as provide more efficient ways to track debt settlements between parties involved in transactions.
Sustainable Agriculture Industry First
This marks the first issuance of its kind for a sustainable agriculture business, further showcasing how blockchain technology can be utilized across multiple industries to create financial opportunities for businesses around the world.