Circle Ventures Backs $4M Round for Blockchain-Based Debt Provider Obligate
Summary
Combined with its initial fundraise in late 2021, Obligates seed round now totals more than $8.5 million.Switzerland-based Obligate essentially allows companies to issue on-chain bonds and commercial paper or debt securities that define the terms of a loan to receive funding from investors in a regulated decentralized finance (DeFi) environment. Alternate routes of fundraising could become more popular as venture capital firms and traditional finance (TradFi) investors take a more cautious approach after the collapse of multibillion-dollar centralized crypto exchange FTX. "Obligate combines the benefits of DeFi with the trust and regulation of TradFi, Obligate co-founder and CEO Benedikt Schuppli told CoinDesk in an email. The liquidity will be denominated in stablecoins such as USDC but can be quickly converted into U.S. dollars, explained Schuppli.Investors will be able to access Obligate through their existing crypto wallet. For each investment, the investor holds the respective eNote (ERC20 token), which carries the right to receive payment at maturity or collateral in the case of a defaultRead more: Circle, Uniswap Research Says DeFi Can Solve $2 Trillion FX Risk Problem