• Lamar Olive Oil issued an on-chain bond with Obligate to become the first sustainable agriculture business to use a Euro-stablecoin denominated bond.
• The underwriting and structuring process was conducted by Obligate’s credit rating partner Credora.
• The issuance of this bond provides small and medium-sized enterprises with a safe and transparent way to issue, track, and settle debt.
Lamar Olive Oil Issues On-Chain Bond
Lamar Olive Oil has become the first sustainable agriculture business to issue a Euro-stablecoin denominated bond using Switzerland-based decentralized finance (DeFi) platform Obligate. This bond is the first of its kind to be denominated in Membrane Finance’s EUROe, which is the only EU-regulated crypto stablecoin.
Underwriting and Structuring Process
The underwriting and structuring process for Lamar Olive Oil’s on-chain bond was conducted by Obligate’s credit rating partner Credora. This included credit evaluation as well as ongoing risk monitoring in order to ensure that all of the necessary steps were taken prior to issuance.
Increased Access To Funding For Small Businesses
Thanks to this debt sale, small and medium sized enterprises have increased access to funding due to lowered thresholds for issuing bonds through Obligate’s platform. Smart contracts replace the role of issuer and paying agent in the settlement layer of traditional bond issuance, making it easier for businesses in developing markets access capital they need quickly without having to go through lengthy processes or wait long periods of time for approval or disbursal.
Blockchain Meets Bonds
Blockchain technology can also be used as an effective tool for solving long standing issues in capital markets such as transparency, efficiency, cost reduction, automation and improved liquidity/accessibility. Utilizing blockchain technology in this way allows organizations like Lamar Olive Oil greater access to capital while providing investors with greater security when investing their money into these types of products or services since all transactions are recorded immutably on the blockchain ledger.
Conclusion
In conclusion, Lamar Olive Oil has successfully issued an on-chain bond with Obligate utilizing Membrane Finance’s EUROe stablecoin. This is a major development for both sustainable agriculture businesses looking for increased access to funding as well as investors who may now feel more secure when investing their money into similar products or services due to the use of blockchain technology ensuring immutable records are kept throughout each transaction made within capital markets.