Lamar Olive Oil Issues Euro-Stablecoin-Denominated Bond on DeFi Platform
• Lamar Olive Oil has issued a debt sale on the decentralized finance platform Obligate, denominated in Membrane Finance’s EUROe stablecoin.
• The underwriting and structuring process was conducted by Credora, Obligate’s credit rating partner.
• The issuance of the bond is a first for the sustainable agriculture industry and offers increased access to funding for companies in emerging markets.
Lamar Olive Oil Issues Bond Denominated in Euro-Stablecoin
Lamar Olive Oil has issued an on-chain bond using Obligate, a Switzerland-based decentralized finance (DeFi) platform, denominated in Membrane Finance’s EUROe stablecoin. This marks the first time that such a bond has been issued within the sustainable agriculture industry and provides increased access to funding for companies in developing and emerging markets.
Underwriting and Structuring Process
The underwriting and structuring process of Lamar Olive Oil’s bond issuance was conducted by Credora, Obligate’s credit rating partner. This included credit evaluation as well as ongoing risk monitoring. These processes serve to ensure that all parties involved are properly protected throughout the transaction.
Benefits of DeFi Platforms
The use of Obligate’s DeFi platform serves to reduce the cost of issuing bonds while also increasing their accessibility for smaller businesses with lower thresholds than traditional methods would allow. Additionally, smart contracts replace the role of an issuer and paying agent in a traditional bond issuance which further reduces costs associated with settlement layers.
Membrane Finance’s EUROe Stablecoin
Membrane Finance’s EUROe is said to be the only EU-regulated crypto stablecoin available today which makes it an attractive option when it comes to making payments internationally or across borders without being subject to fluctuating exchange rates or foreign transaction fees. This ensures that all parties involved can trust that their money will remain secure during transactions while also providing greater transparency than more traditional forms of payment processing services offer.
This debt sale marks a milestone for both Lamar Olive Oil specifically as well as for other companies operating within the sustainable agriculture industry at large who now have access to increased sources of funding thanks to advancements made possible through decentralized finance platforms like Obligate and digital assets like Membrane Finance’s EuROe stablecoin.