Fintech startup Obligate, which is at the forefront of institutional adoption in on-chain capital markets, has introduced its first bond issuance on Base. For this endeavour, the startup has partnered with Mikro Kapital, a Luxemburg based company specialized in impact finance and microfinance.
Obligate’s core functionality allows companies to issue on-chain bonds and debt securities, obtaining funding from investors. The company provides a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. Featuring their proprietary eNotes®, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards.
In partnership with Mikro Kapital, Obligate has introduced its first bond insurance. Initially introduced on Polygon, the company is expanding its capabilities by enabling the first transaction in the Base network, an Ethereum L2 incubated by Coinbase. Mikro Kapital, established in Luxembourg in 2008, focuses on microfinance to support the real economy in emerging countries. The firm’s commitment to providing financial opportunities to small businesses aligns with this issuance, designed to facilitate growth and development. Additionally, Mikro Kapital’s business model allows a full overview on the flows, from investors to end-borrower, reducing risks, optimizing the returns and eliminating costs related to intermediaries.
The partnership with Mikro Kapital and the first bond issuance on Base, underlines Obligate’s aim to transform the financial sector. This initiative is a step forward in its mission to streamline capital flow, enabling growth and opportunity globally. ALTERNATIVE, a Mikro Kapital securitization fund, will direct the proceeds from this bond towards providing microcredits and loans to micro, small and medium-sized enterprises (MSMEs), in addition to supporting sharing economy services. This bridges the gap between investors and end borrowers and minimizes costs and risks associated with intermediaries, fostering local economic growth.
“The issuance by Mikro Kapital, using Obligate and the BASE network exemplifies the scaling of our platform and sets a precedent for how we envision future collaborations and the expansion of our services”, said Tobias Wohlfarth, Head of Origination at Obligate. “Bringing this issuance process on-chain allows us to more efficiently connect capital providers with borrowers, while also cutting out extra costs of middlemen, helping local economies grow”, he adds.
(Pres release/RAN)
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