• Lamar Olive Oil has issued a bond on the Obligate DeFi platform using Membrane Finance’s EUROe, the only EU-regulated crypto stablecoin.
• The underwriting and structuring process was conducted by Obligate’s credit rating partner Credora.
• The bond issuance is a first for the sustainable agriculture industry and provides SMEs with access to funding.
Lamar Olive Oil Issues Euro-Stablecoin Bond on Obligate
DeFi Platform Promotes Access to Funding for Small Businesses
Lamar Olive Oil, a French sustainable agriculture business, has become the first company in its industry to issue an on-chain bond using Obligate’s decentralized finance (DeFi) platform. The debt sale was denominated in Membrane Finance’s EUROe, which is the only EU-regulated crypto stablecoin. Underwriting and structuring of the bond was handled by Obligate’s credit rating partner Credora. This issuance is part of Obligate’s goal of providing increased access to funding for small and medium enterprises (SMEs) in developing and emerging markets.
Smart Contracts Replace Issuer and Paying Agent Role
The traditional role of the issuer and paying agent is replaced by smart contracts when issuing bonds through Obligate. These contracts enable companies to reduce administrative costs as well as establish trust between buyers and sellers without having to rely on middlemen or third parties. Moreover, it allows companies to access capital at lower thresholds than traditional financial instruments allow them to do so far.
EUROe Keeps Bond Denomination Stable
Membrane Financial’s EUROe keeps Lamar Olive Oil’s bond denomination stable despite fluctuations in market prices due to its use of algorithmic price controls that are designed specifically for this purpose. It also offers additional security as it is EU-regulated compared with other fiat-backed cryptocurrencies such as USDT or USDC that may be used in other DeFi projects but are not regulated across all member states within Europe.
This debt sale marks an important step forward for both decentralized finance projects as well as small businesses who can now access capital at lower thresholds than ever before thanks to blockchain technology and smart contracts provided by platforms like Obligate. Furthermore, it also shows how cryptocurrency can offer stability compared with other forms of money while still offering users security from potential scams or frauds that could occur with unregulated tokens or coins outside of Europe’s jurisdiction