Obligate raised Seed extension funding to accelerate regulated DeFi

Share now

Read this article in:

Obligate
©   Obligate

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.

Advertisement

About Obligate

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.”

Advertisement

Get the top Stories in your Inbox

Sign up for our Newsletters

Specials from our Partners

Previous
Next