Lamar Olive Oil Issues First Euro Stablecoin Bond on DeFi Platform
• Lamar Olive Oil issued an on-chain bond using Obligate in a first for the sustainable-agriculture industry.
• The debt sale was denominated in Membrane Finance’s EUROe, which is the only EU-regulated crypto stablecoin.
• The process of underwriting and structuring was conducted by Obligate’s credit rating partner Credora.
Lamar Olive Oil Issues Euro-Stablecoin Bond on DeFi Platform
Lamar Olive Oil has become the first sustainable agriculture business to issue a bond denominated in a euro-stablecoin on Obligate’s decentralized finance (DeFi) platform. This groundbreaking debt sale was facilitated by Membrane Finance’s EUROe, the only EU-regulated crypto stablecoin. Underwriting and structuring processes, including credit evaluation and ongoing risk monitoring, were conducted by Obligate’s credit rating partner Credora.
A New Way of Issuing Debt
Obligate is built on the Polygon blockchain and helps small and medium-sized enterprises access funding through a safe and transparent way of issuing, tracking, and settling debt. By lowering thresholds to issue bonds, companies in developing or emerging markets can gain increased access to capital investment. Smart contracts replace the role of issuer and paying agent in traditional bond issuances, making these transactions more efficient than before.
Increased Access To Funding For SMEs
By issuing their bonds through Obligate, Lamar Olive Oil has paved the way for other small businesses to gain increased access to funding that they may not have been able to obtain previously due to lack of resources or infrastructure availability. Furthermore, this new way of issuing debt eliminates some of the risks associated with traditional methods such as potential counterparty default or failed settlements which can cause significant delays or losses for investors.
Benefits Of Using A Stablecoin
The use of a euro-stable coin such as EUROe further reduces risks associated with cross border payments as it eliminates exchange rate volatility from affecting transaction amounts over time due to its fixed 1:1 peg with its underlying fiat currency, enabling seamless transferability between jurisdictions without any disruption caused by fluctuating rates which could affect both parties involved in the transaction negatively..
In conclusion, Lamar Olive Oil has made great strides towards increasing accessibility for smaller businesses who are looking for financing options outside of traditional methods while also reducing risks associated with cross border payments through their innovative use of blockchain technology and DeFi platforms such as Obligate powered by EUROe tokenized stablecoins .