Obligate Closes $4 Million Seed Extension Round with Circle Ventures Involved

Obligate, a startup offering blockchain-based regulated debt securities, closed a $4 million seed extension round with participation from Blockchange Ventures and Circle Ventures.

The funds will help the firm, which was formerly known as FQX, scale its debt platform that is set to go live next month on the Polygon blockchain. Obligate’s seed round now totals more than $8.5 million.

Obligate allows companies to issue on-chain bonds and commercial paper – or debt securities that define the terms of a loan – to receive funding from investors in a regulated DeFi environment.

Issuers have to go through KYC verifications before creating a bond program suited to their liquidity needs. The liquidity will be denominated in stablecoins such as USDC but can be quickly converted into U.S. dollars.

Investors will be able to access Obligate through their existing crypto wallet. For each investment, the investor holds the respective eNote (ERC20 token), which carries the right to receive payment at maturity or collateral in the case of a default.