Obligate, a startup offering blockchain-based regulated debt securities, recently announced that it has raised $4 million in a seed expansion round.
Development of Obligate
According to the announcement made by Obligate, the seed expansion round included seed investors Earlybird, SIX Fintech Ventures, Blockchange Ventures, and Circle Ventures. Combined with the first seed round, the total funds raised by the company from the seed round exceeded $8.5 million. The platform stated that it would use this funding to scale its debt platform, which will go live on the Polygon blockchain next month.
About Obligate
The Company, based in Switzerland, essentially allows companies to issue chained bonds, commercial paper, or debt securities that define the terms of a loan to raise funds from investors in a regulated decentralized financial environment. Alternative ways of fundraising are becoming more popular, especially as venture capital firms and traditional finance investors tread more carefully after the collapse of FTX, the multi-billion dollar centralized crypto exchange.
Benedikt Schuppli, CEO and Co-Founder of Obligate, said:“Obligate combines the benefits of DeFi with the trust and regulation of TradFi. Obligate is more efficient than many other bond platforms as we allow a direct issuance of blockchain-based bonds from the issuer to the wallet of the investors.”
Features of The Platform
Before creating a bond program that suits their liquidity needs, issuers need to go through Know Your Customer (KYC) verifications, which can perform in a few clicks. In addition, Schuppli explained that the liquidity will be denominated in stablecoins such as USDC but can quickly convert into US dollars.
At the same time, investors will be able to access the platform through their existing crypto wallets. For each investment, the investor holds the corresponding eNote (ERC-20 token), which carries the right to receive payment or collateral at maturity in case of default.
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