Morningstar first valued security on Ethereum blockchain

Fatburger, an American fast-food chain of restaurants, closed a $ 39.7 million round of fundraising on Friday by “leveraging securities on the Ethereum blockchain.” About it writes Forbes.

Fatburger’s offer was evaluated by DBRS Morningstar, a global credit rating agency, which was the first to conduct such an operation for securities using distributed ledger technology.

“Although the rating itself is associated with traditional paper debt securities, Morningstar has allocated faster access to security data as a result of increased transparency through the use of Ethereum. This paves the way for new crypto assets on the blockchain, ”Forbes notes.

Consulting company Cadence helped organize the proposal. With her participation, ERC20 tokens, which are a digital reflection of securities, were credited to investors’ wallets. Information about this was recorded in the Ethereum blockchain. It will also be used for quarterly payments.

The administrator of the transaction was UMB Bank. On his wallets, $ 40 million was placed in $ CDG stablecoin, while FAT Brands, the parent company of Fatburger, held tokens representing two tranches of securities. The exchange of stablecoin for FAT2020 tokens between investors was carried out using a smart contract, which was also recorded on the blockchain.

FAT Brands President Andrew Widerhorn said that they are currently developing several other projects, and the final goal of raising funds by the end of the year is set at $ 500 million.

Cadence CEO Nelson Chu said: “Definitely, this is the first evaluated securitization with a digital asset element that we used for its intended purpose – to ensure a level of transparency.”