• Lamar Olive Oil has issued a bond denominated in Euroe, a EU-regulated crypto-stablecoin, on the Obligate DeFi platform.
• The underwriting and structuring process was conducted by Obligate’s credit rating partner Credora.
• This issuance helps provide small and medium-sized enterprises with access to funding.

Lamar Olive Oil Issues First Euro-Stablecoin Bond

Lamar Olive Oil, a French sustainable agriculture business, has issued an on-chain bond using Obligate in a first for the sustainable-agriculture industry. The bond is denominated in Membrane Finance’s EUROe, which is the only EU-regulated crypto stablecoin.

Underwriting and Structuring Process

The underwriting and structuring process, including credit evaluation and ongoing risk monitoring was conducted by Obligate’s credit rating partner Credora. This process helps ensure that companies issuing bonds can be trusted to make their payments on time and as agreed upon in the contract.

Benefits of Obligate Platform

Obligate, which is built on the Polygon blockchain, helps small and medium-sized enterprises by providing a safe and transparent way of issuing, tracking and settling debt. With the thresholds to issue bonds lowered through this platform, companies in developing and emerging markets can gain increased access to funding that would have been too difficult or expensive before.

Smart Contracts

Smart contracts replace the role of the issuer and paying agent in the settlement layer of a traditional bond issuance. This ensures that all parties involved are protected from fraud or manipulation while transactions remain secure thanks to automated processes within smart contracts ensuring accuracy at every stage of execution.

Conclusion

The issuance of Lamar Olive Oil’s euro-stablecoin denominated bond marks an important milestone for sustainable agriculture businesses seeking additional sources of funding through decentralized finance platforms like Obligate. By leveraging smart contract technology these businesses can now access financial services more securely than ever before while ensuring transparency throughout all transactions with minimal effort required from each participant involved.