Global Settlement has completed a historic asset acquisition deal using tokenization for financing. This deal marks a significant step in the adoption of tokenized assets in the energy market.
Financing the $75 Million Deal
A $75 million deal has been finalized for the acquisition of an operational oil and gas facility in Latin America using a fully tokenized capital stack, including both debt and equity. This operation was initiated by Feniix Energy, which confirmed the use of Global Settlement's GSX Protocol. This marks the first instance where a tokenized structure has been applied to finance the purchase of a live energy asset.
Benefits of Tokenization
Tokenization, the process of representing real-world assets on blockchain platforms, is seen as an innovation in capital markets. It allows for simplified cross-border transactions, reducing settlement times from days to minutes, and creating new channels of liquidity, especially in underbanked regions. "This deal fundamentally transforms the financial landscape of energy infrastructure," stated Feniix Energy director Alejandro Uribe. According to Kyle Sonlin, founder of Global Settlement, tokenization greatly reduces settlement frictions when moving capital across borders, utilizing stablecoins in the process.
New Opportunities for Emerging Markets
Sonlin emphasized that tokenization can unlock funding for commodity-linked infrastructure in emerging economies, which are often excluded from conventional debt and equity markets. "Commodities make up a major portion of GDP in many emerging markets, yet traditional financing is often out of reach. Tokenization offers a powerful alternative," he added. Global Settlement views this deal as a template for future tokenized mergers and acquisitions.
Industry forecasts suggest that the tokenized real-world asset market could significantly expand in the coming years, opening new opportunities for global investments and transformation of financial infrastructure.
