Tokenization of natural resources: oil & gas, gold, copper, and more.

Tokenization of natural resources: oil & gas, gold, copper, and more.

Tokenization of natural resources: oil & gas, gold, copper, and more.

The prices of natural resources have soared during the last year, increasing by 50%-75%. This creates a significant interest from investors and makes businesses very attractive and profitable. On the contrary, the possibility to invest in commodities companies is very limited, so raising capital to start or grow your natural resources business is challenging.

Models of how tokenization can be implemented for commodities

Tokenization is a series of technical and legal procedures to transfer asset ownership to the blockchain. This means that holding a token in your wallet on a smartphone provides you with rights to the underlying asset, such as the full ownership right, rights to cash flows generated by the asset, etc.

There are two models of how the tokenization of natural resources can be implemented.