Obligate, a blockchain-based debt infrastructure provider based in Zurich, announced on Thursday that it has successfully raised an additional funding in its Seed extension round, bringing the total capital raised to $8.5M. The round was participated by Blockchange Ventures, Circle Ventures, as well as its initial seed co-investors Earlybird and SIX Fintech Ventures. The company was previously known as FQX.
According to Benedikt Schuppli, the Co-Founder and CEO of Obligate, the recent funding from leading institutions in both traditional finance and blockchain technology is a validation of the potential of using blockchain to improve traditional financial instruments. He states that the investment will allow the company to create a more efficient and accessible financial system by directly connecting borrowers and investors.
Obligate was founded by a team of experts with a unique combination of financial, legal, and technical knowledge. Dr. Stephan Meyer, Dr. Philipp von Randow, and Benedikt Schuppli came together to develop a blockchain-based financial system. Dr. Stephan Meyer, the Co-Founder and Chief Legal Officer of Obligate, explains that the platform is a one-stop-shop for bond and commercial paper, utilizing automation throughout the transaction process and a public blockchain. This approach simplifies, increases flexibility and reduces the cost of bond issuances while ensuring compliance with legal and regulatory standards.
Obligate is a Swiss-based platform that uses blockchain technology to create a decentralized and regulated environment for on-chain financing through the use of bonds and commercial paper. According to the company, its approach offers the same level of regulatory certainty as traditional offerings, but at a fraction of the cost and time. The platform also allows investors to access a wide range of regulated digital debt assets, which can be secured with on-chain collateral. Obligate’s platform leverages smart contracts and tokenization to reduce the time and costs associated with bond issuance by 80%, eliminating the need for intermediaries such as paying and issuer agents. The company plans to launch its blockchain-based platform in Q1 2023, enabling end-to-end corporate debt funding. “Obligate’s vision of using the efficiency and speed of blockchain embedded in a structure that still supports the core needs and requirements of existing debt markets is powerful,” says Ken Seiff, Managing Partner at Blockchange Ventures. “It takes a team with this combination of background and depth of experience to make this happen.”