Obligate Launches First USDC-Denominated Structured Investment Product on Polygon

Obligate
3 min readNov 15, 2023

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The partnership between STS Digital and Obligate marks a transformative step for blockchain-enabled financial innovation and investment opportunities

Zurich, Switzerland — November 15th, 2023 — Obligate, an on-chain capital markets platform today unveiled a milestone with the successful launch of a structured product (Barrier Reverse Convertible linked to Bitcoin. Issued as an eNote, Obligate’s trademarked digital security, this development ushers in a new chapter for on-chain investments, leveraging the flexibility and potential of digital assets. STS Digital Ltd, a leader in regulated digital asset services, is the first to issue through this novel way, setting a new precedent for the issuance and distribution of structured investment products on the blockchain.

For the first time investors can now access customized investment products issued natively on-chain. The products issued on the Polygon blockchain can provide exposure to a wide variety of assets combined with bespoke payoff profiles that were previously not available as an investment solution to investors looking to deploy their Digital Assets. Higher levels of transparency, automation, and efficiency can be achieved by replicating the product mechanics using Obligate’s Smart Contract-based platform.

“As we continue to evolve the financial sector, Obligate is excited to partner with STS Digital Ltd, combining our technological leadership with their trading expertise,” said Tobias Wohlfarth, Head of Origination at Obligate. “This partnership is set to redefine the investment possibilities available to investors on-chain, aligning perfectly with our vision of pioneering a regulated and decentralized financial future.”

The partnership will extend beyond the current product to establish an extensive product suite alongside a broad spectrum of digital asset services, showcasing the wide-ranging competencies of both entities.

Wohlfarth noted the addition of Structured investment products to the Obligate platform underlines the scalability of the Obligate platform and its potential to deliver Blockchain-based investment solutions for a broad set of client demands in the digital asset domain.

STS Digital Ltd, overseen by the Bermudan Monetary Authority, contributes its expertise in digital asset derivatives and structured product issuance for institutional investors. The collaboration signifies a shared dedication to advancing the digital asset field, delivering products attuned to market needs and the sophisticated investor.

Gideon Hyams, co-founder of STS Digital Ltd, shared the excitement for the release. “Our partnership with Obligate allows us to bring structured products on-chain and make the product life-cycle fast and cost efficient. Our expertise in derivatives allows us to transform high volatility from digital assets into attractive coupons and payouts.”

Going forward Obligate and STS Digital will offer, amongst other services, tailor-made investment products based on client requests alongside monthly highlight products with the second product already in subscription.

For detailed information on this structured product and other services from Obligate and STS Digital, visit https://obligate.com/ and https://www.stsdigital.io/.

About STS Digital Ltd

STS Digital Ltd, regulated by the Bermuda Monetary Authority, is a specialist in the field of digital asset trading and issuance. The firm is licensed under the Bermuda Digital Asset Business Act 2018 as a Class T Digital Asset Business, providing a comprehensive suite of services including operation of a digital asset exchange, custodial wallet services, digital asset derivative exchange provision, and digital asset services vending.

About Obligate

Obligate merges legal and tech know-how with financial expertise to build a new blockchain-based financial system. With a commitment to regulation and decentralization, Obligate offers a platform for on-chain financing using bonds and commercial paper on Polygon. With team members across multiple continents, Obligate is globally recognized for its contributions to financial innovation.

Media enquiries:
Alex Sheehan, on behalf of Obligate
E: alex@wachsman.com

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Obligate

Obligate is an investment platform that enables investors to explore and invest in on-chain bonds in a regulated environment.