“Tokenize all the things!” – what began as memes is slowly becoming a reality. After real estate, works of art and EM tickets, ownership rights to container ships are also to land on the Blockchain. At least if the plans of the company Magma Maritime go according to plan.
The London-based company Magma Maritim is planning the digital securitization of ownership rights to ships. The ownership structure of container and cargo ships should be able to be mapped as digital tokens using block chain technology.
These (security) tokens will later be tradable on a regulated exchange. The secondary market made possible by tokenization should help the industry to achieve more liquidity. According to a press release from Magma Maritim, BTC-ECHO, the company is already in “advanced negotiations” with potential investors for a planned $200 million investment in several modern cargo ships.
The project is supported by the London shipbroker John C Hadjipateras & Sons.
“The maritime industry is focusing more on sustainability to achieve certain goals. This means an increased use of younger, more efficient ships and our new proposal would make this possible […]. It also makes it easier for institutional investors to engage in the maritime sector by further diversifying their portfolios with asset-covered tokens,” says John M. Hadjipateras, who himself is part of the Magma Maritim team.
Focus on sustainability
The platform will focus on sustainability: Investments are to be made primarily in new ships or in the climate-friendly upgrading of older ships.
Andrew Graham, Member of the Board of Magma Maritim, combines the sustainability issue with the declining willingness of banks to participate in the financing of ships. Tokenisation could provide the answer to the banks’ withdrawal:
“Now is the right time to try to launch the first tokenized financing proposal for the maritime industry. The concept is now much better understood, while access to finance in the maritime sector has become much more difficult. In recent years, the number of banks offering ship financing has decreased dramatically […]. We believe that a sustainable focus is now imperative for the sector to thrive and Magma can help to achieve this with token-funded fleets,” Graham is quoted in the press release.
Tokenization on the rise
Meanwhile, the tokenization of classic assets is visibly picking up speed, especially in the real estate sector. As recently as January, a property in the heart of Zurich’s city centre was tokenised to the equivalent of 130 million euros. Similar ventures have already taken place in this country, albeit on a smaller scale. But tokenization also offers new investment opportunities for the art market: Art tokens can democratize the ownership of works of art.