Singapore-based fintech startup Polytrade has raised growth capital through an on-chain bond issuance facilitated by Obligate, an on-chain capital markets platform. The uniquely structured bond marks Polytrade's expansion into Asia as it evolves its business from a single asset tokenization play into a diverse, multi-asset marketplace for real-world assets (RWAs).
TLDR
- Polytrade issues its first on-chain bond via Obligate platform, backed by trade receivables
- The bond was issued as an electronic, blockchain-based note (eNote) on Polygon network, with proceeds in USDC stablecoin
- Issuance marks Polytrade's expansion into Asia and its evolution as a multi-asset RWA marketplace
- Obligate facilitates access to new forms of capital for non-bank lenders like Polytrade to fill lending gaps left by banks
- Polytrade aims to ease liquidity bottlenecks in RWA sector through this partnership with Obligate
The blockchain-based bond was issued as an electronic note (eNote) on Polygon's layer-2 network, with all proceeds disbursed to Polytrade in the USDC stablecoin. Backed by Polytrade's trade receivables and structured by Obligate, it allows the company to tap into new on-chain sources of debt financing complementing traditional bank lending.
For high-growth fintechs and marketplace lenders like Polytrade, these alternative funding sources are crucial given banks' conservative approach to lending in Asia due to stricter regulations. As Tobias Wohlfarth of Obligate stated,
"Platforms such as Obligate, by providing such non-bank lenders access to new forms of capital, play a crucial role in filling this gap."
Beyond fundraising, this on-chain bond issuance holds strategic significance for Polytrade. Coming closely on the heels of its recent marketplace soft launch, it underscores the company's commitment to driving RWA adoption and growth in Asia where the tokenization industry is still nascent.
As Piyush Gupta, Co-Founder and CEO of Polytrade noted, "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."
Obligate's end-to-end digital securities issuance and lifecycle management platform was critical to facilitating Polytrade's foray into tokenized bonds. With its proprietary eNotes legislation-compliant architecture, enforceable debt securities, and dispute resolution mechanisms, Obligate enables institutional adoption of on-chain capital solutions.
For Polytrade, this partnership specifically helps overcome a persistent challenge in the RWA ecosystem - lack of liquidity. As Milind Bansia, Head of Strategy at Polytrade explained, "Liquidity is one of the key bottlenecks for RWAs and this partnership with Obligate marks a big step towards easing liquidity for the sector."
Going forward, Polytrade plans to continue leveraging Obligate's platform for its diverse digital bond issuances as it scales its operations. Polygon will also remain a key collaborator having provided the layer-2 infrastructure to securely conduct this inaugural on-chain financing round.
With its expansion into new geographies and assets, deepening liquidity pools, and an ability to raise growth capital through innovative deal structures, Polytrade is poised to advance the institutional adoption of RWAs globally.
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