The Project:
The shipowner was considering innovative ways to unlock liquidity via tokenization and raise financing to pursue other projects. The initial focus was to explore options around real world asset tokenization as a means of fundraising by way of sale of digital assets.
At the time, the owner was exploring tokenization as a means of fundraising and fractionalizing ownership of income-generating vessels.
We presented various proposals on how to leverage transition finance to enhance the appeal of the fundraising campaign, in order to achieve both the primary objective of unlocking liquidity, while simultaneously enhancing the competitiveness of vessels through the application of a portion of the proceeds towards environmental upgrades and retrofits for the vessels. In view of the current landscape, with increasing demand for low carbon cargo transportation and the shipping sector being subject to emissions trading schemes and carbon taxes, we believe green retrofits of shipping vessels can enhance a vessel’s potential to generate income for investors and mitigate potential risks of carbon-related costs. An added bonus is the potential to generate carbon credits from the green retrofits, creating an extra revenue stream for the vessels.
This can all be enabled by the power of tokenization to streamline the investment and asset management process, as well as tracking the environmental benefits generated by the green retrofits for impact reporting and distribution in the form of digital carbon credits.
Altogether three wins – a win for the shipowner, a win for investors and a win for the planet!