Zurich/Luxembourg – Obligate announces the issuance of a new digital bond by Luxembourg-based Mikro Kapital. Obligate wants to use the blockchain to bring lenders and small borrowers together more efficiently and thus promote the growth of local economies in emerging countries.
Obligate has issued a new digital bond through Mikro Kapital. According to a press release, this step marks the first involvement of the Zurich-based start-up Obligate, which was founded in 2019, on the Base platform, an Ethereum Layer 2 developed by Coinbase.
The Luxembourg-based company Mikro Kapital focuses on microfinance to support the real economy in emerging countries. Its securitization fund ALTERNATIVE will use the proceeds from this bond to provide microcredits and loans to micro, small and medium-sized enterprises and to support sharing economy services.
With the Obligate platform, companies can issue blockchain bonds and commercial paper to obtain financing from a wide range of investors. The instruments are globally enforceable, regulated debt instruments. At the same time, investors gain access to a broad range of regulated digital debt instruments. By using smart contracts and tokenization instead of intermediaries, Obligate claims to be able to reduce the costs associated with a bond issue by 80 percent and cut the time it takes from weeks to hours.
"The issuance by Mikro Kapital through Obligate and the BASE network is an example of scaling our platform and a precedent for how we envision future collaborations and the expansion of our services," said Obligate's Head of Origination, Tobias Wolfarth. "By bringing this issuing process into the blockchain, we can bring lenders and borrowers together more efficiently." This promotes the growth of the local economy. ce/mm