Key Takeaways
- Innovative Bond Issuance: Obligate’s blockchain platform successfully facilitated bond issuance for Polytrade, highlighting the growing role of blockchain in capital markets.
- Addressing SME Funding Challenges: This partnership is particularly significant as it offers alternative funding options for SMEs in the Asia-Pacific region, where traditional bank lending can be challenging due to stringent regulations.
- Global Tokenization Advancements: The collaboration between Obligate and Polytrade signifies advancements in global tokenization, making it easier for real-world assets to be represented as tokens on the blockchain.
Polytrade, a global tokenized real-world asset marketplace, has made a significant move in the world of innovative fundraising by issuing its first on-chain bond through Obligate, a leading on-chain capital markets platform. The funding was secured using an electronic, on-chain bond known as eNote on the Obligate platform, with all proceeds disbursed in Circle’s USDC stablecoin. This milestone follows Polytrade’s recent soft launch of its new Real World Asset (RWA) marketplace, signaling the company’s commitment to expanding its tokenization business.
Piyush Gupta, CEO of Polytrade, expressed his optimism about the collaboration, stating, “This eNote marks the start of a long-lasting relationship with Obligate. It also showcases our resolve in continuing to grow our tokenization business while we go from a single asset to a multi-asset RWA aggregator.”
Tobias Wohlfarth, Head of Origination at Obligate, emphasized the strategic significance of this partnership, stating, “As the select partner of Polytrade’s inaugural and forthcoming digital bond issuances, we are signifying a strategic advancement into the Asian market. This alliance reaffirms our steadfast dedication to transforming on-chain capital markets without geographical limitations.”
The collaboration between Obligate and Polytrade also drew attention from Colin Butler, Global Head of Institutional Capital at Polygon Labs, who commented, “As the tokenization landscape evolves, greater global market access and broader infrastructure offerings are going to be critical to widespread adoption. Obligate and Polytrade are swiftly addressing both of these core competencies, and we are excited to see this growth of the tokenization space being facilitated on Polygon.”
Addressing SMEs Funding Challenges in APAC Through Innovative Financing
One of the key drivers behind this innovative fundraising approach is the unique challenges faced by small and medium-sized enterprises (SMEs) in securing traditional bank lending in the Asia-Pacific (APAC) region. Banks in this region tend to be more conservative due to stringent regulatory requirements, making diverse funding sources a necessity for SMEs. Platforms like Polytrade, offering alternative funding options, are becoming increasingly significant in addressing this gap. Obligate, by providing non-bank lenders access to new forms of capital through blockchain technology, plays a crucial role in bridging this financing divide.
Milind Bansia, Head of Strategy at Polytrade, highlighted the importance of this partnership in terms of liquidity for RWAs, stating, “Liquidity is one of the key bottlenecks for RWAs, and this partnership with Obligate marks a big step towards easing liquidity for the sector.”
Obligate’s role in advancing blockchain-based capital markets doesn’t stop at facilitating bond issuances. The platform’s recent invitation to join the Tokenized Asset Coalition, alongside industry giants Circle and Coinbase, underscores its commitment to shaping the future of tokenization. As a coalition member, Obligate actively contributes its expertise in arbitration, regulation, and tokenization, participating in research initiatives focused on the development of Tokenization Laws, DLT-based Dispute Resolution & Arbitration Schemes, and RWA Regulation on a global scale.
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