Obligate (formerly FQX), has secured an additional $4m in a seed extension round, bringing the total seed proceeds to above $8.5m. The funds will enable the startup to advance its regulated DeFi platform as it prepares for the launch in Q1 2023.
Blockchange Ventures and Circle Ventures, as well as existing investors Earlybird Venture Capital and SIX Fintech Ventures have again invested in Obligate, a crypto startup that combines deep legal and tech know-how with financial expertise to help build a new blockchain-based financial system. Promoting a fully regulated approach, Obligate offers a decentralized platform for on-chain financing using bonds and commercial paper. Thus, obligate unlocks a new era for DeFi-regulated but decentralized.
With the Obligate platform, companies can issue on-chain bonds and commercial paper to obtain funding from a diverse range of investors. This comes at a fraction of the cost and time of traditional offerings but with the same regulatory certainty, as the instruments are globally enforceable, regulated debt securities. At the same time, investors get access to a wide range of regulated digital debt assets which can be secured with on-chain collateral. Utilizing smart contracts and tokenization in place of intermediaries such as paying and issuer agents, Obligate is able to reduce the costs associated with a bond issuance by 80% and reduce the time needed for issuance from weeks to hours.
Building on its existing blockchain-based debt infrastructure, Obligate will launch its blockchain-based platform and enable end-to-end corporate debt funding in a decentralized and regulated environment. The Obligate platform will launch in February 2023 on the public blockchain Polygon. The obtained capital will enable the startup to reach this milestone.
Wyatt Lonergan of Circle Ventures shares: “Obligate is bringing innovation to help bridge the worlds of traditional finance and DeFi. Through their platform, Obligate is adding utility and a compliant regulatory framework to the emerging real-world asset (RWA) DeFi market. We are excited to back the Obligate team as they prepare for their upcoming platform launch.”
Benedikt Schuppli, Obligate’s Co-Founder & CEO (photo), comments: “This backing from leading TradFi and Web3 institutions proves the value of applying blockchain technology to traditional financial instruments. This investment enables us to build a more accessible and efficient financial system where borrowers and investors are directly connected.”
(Press release/RAN)
Please login or sign up to comment.
Commenting guidelines