TradeFlow Capital Fund issues USDC-denominated bond via Obligate

Obligate
3 min readDec 20, 2023

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The issuance is marking Obligate’s first direct engagement with a fund showcasing a novel use case for its platform and broadening the scope of financing options for funds.

Zurich, Switzerland — December 20th, 2023 — Obligate, the leading on-chain capital markets platform, has successfully enabled the USD TradeFlow Fund to issue a USDC-denominated bond on the Polygon blockchain. Through this issuance the USD TradeFlow Fund achieves an optimization and diversification of its financing sources accessing new sources of capital in a flexible manner. The bond leverages Obligate’s eNote framework, thereby ensuring a legally compliant and globally acceptable standard for digital securities.

Tobias Wohlfarth, Head of Origination at Obligate, commented: “Partnering with TradeFlow Capital Management, the investment advisor to the Trade Flow Funds, for this issuance marks a pivotal moment for us, demonstrating Obligate’s capability to innovate and expand the financing options for funds”.

The transaction has garnered attention due to the direct investment by different types of accredited investors such as high-net-worth individuals (HNWI), investment firms and family offices. This aspect of the issuance, featuring investment from HNWIs and investment firms, demonstrates Obligate’s ability to directly connect issuers with a diverse investor base.

Tom James, CEO TradeFlow Capital Management, adds: “Based on our dedication to digital innovation and the digital economy overall, working with the Obligate team and launching a bond through the Obligate platform has proven to be an eye-opener in demonstrating the efficiencies that can be achieved leveraging Blockchain technology for raising capital“.

The issuance of this subordinated bond through Obligate’s platform showcases its versatility in supporting a range of modular debt instruments, including senior and junior debt. This adaptability enables funds to efficiently raise working capital tailored to their specific capital structure needs, directly engaging with capital markets.

This announcement concludes a remarkable year for Obligate, marked by a series of successful product developments and issuances in 2023, including the platform’s first structured product with STS digital, and several other key transactions.

About TradeFlow Capital

Founded 2016 in Singapore by Commodity market, shipping and trade logistic veterans, TradeFlow Capital Funds’ is a digitalised, non-credit approach to enabling physical commodity import/export transactions offering high, stable returns to investors. TradeFlow minimizes the pure credit risk faced by traditional trade logistic solutions, and replaces it with real-world insurable physical risks. Each transaction is individually insured with Marine Cargo All-Risk Insurance from a diversified group of reputable and highly rated insurers.

About Obligate

Obligate AG is a member of VQF, a Swiss FINMA regulated AML SRO, and a financial intermediary. Standing at the forefront of institutional adoption in on-chain capital markets, Obligate is providing a secure, transparent, and regulatory compliant platform for the issuance, trading, and lifecycle management of debt instruments natively issued on the blockchain. The platform’s unique architecture caters to the complex needs of institutional investors whilst lowering the barriers of entry for issuers by providing efficient access to multilateral financing. Featuring their proprietary eNotes®, ledger-based securities based on the most advanced DLT-legislation, a comprehensive dispute resolution framework, and global enforceability of the debt securities, Obligate demonstrates its commitment to meeting institutional standards.

Media Contact:
Amy O’Connor
Wachsman
amy.oconnor@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.