Ziyen Inc., an oil and energy company, has just announced it will be tokenized oil assets. The tokens will be stored on the Ethereum blockchain.
Ziyen Inc., is moving from oil and gas to blockchain technology, it seems. The energy company is looking to position itself as a market leader in the blockchain space in the oil sector. It is the first such company to list oil assets on the Ethereum blockchain.
CEO Alastair Caithness told reporters:
“This is historic, monumental and revolutionary. I could not be more proud of our team. We are now in a position to complete the tokenizing of a commodity on the Ethereum Blockchain; ZiyenCoin will likely become a market leader in the space. The goal of the company is always to enhance the energy industry. Satoshi Nakamoto invented Bitcoin, but also invented the blockchain and by creating this hybrid model utilizing the technology of the blockchain, it will nevertheless have positive, cost-saving ripple effects across a $5 trillion industry.
Ziyen plans to utilize the ERC-20 token standard with traditional compliance expected for securities. Each ERC-20 token sold by ‘ZiyenCoin’ will be enforced by a smart contract which will outline the securities obligations to holders.
The oil blockchain industry is quickly growing, and it is being pushed by the security token sector. Other companies in other sectors have attempted to make similar efforts, such as tokenizing gold bars or other metals.
Traditionally, oil is a market which demands high liquidity. Tokenizing these assets would further increase capital investment and make these rare assets more-easily tradeable. Overall, Ziyen is looking to position itself as a leader in this growing space.
The date for the STO is yet to be annonced.
Do you believe security tokens can benefit the oil industry? Let us know your thoughts in the comments below.
Image courtesy of Ziyen Inc.