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Oil and Energy Tokenization Model Provides a New Capital Raising Instrument Utilizing Blockchain

Ziyen Energy has announced they have received their sixth and seventh oil cash distributions for their tokenized energy fund.

Alastair Caithness, Ziyen Energy CEO, stated,

Ziyen Energy is the tip of the spear in this change to the industry. Even with oil prices over $100 a barrel the US marketplace is slow to boost oil production in the wake of Russia’s invasion of Ukraine. Private Equity firms and a number of major banks in the energy space are reluctant to invest in upstream oil and gas projects going forward due to the large amount of government policies aimed at combating climate change with the focus now on energy transition.

As this transition in energy is happening, we believe it is the development of the Energy Tokens platform will address the challenges facing the industry by democratizing energy investment opportunities, creating liquidity for illiquid energy investments, and facilitating better access to capital for energy development projects.

David Rogers, Energy Tokens CTO, added,

Prior to Energy Tokens (i) direct investments in energy producing assets have been made exclusively through negotiated private transactions through parties in direct and personal contact with one another, (ii) the transfer of even the smallest interests in energy producing assets have required negotiated contracts and physical document filings in antiquated local land registries and (iii) the information to support making and monitoring such investments is not readily available to owners and other stakeholders or preserved in a complete and unalterable form for the life of the project and beyond. 

These limitations (i) add significant cost and redundancies to the purchase, sale and monitoring of energy assets, (ii) cut-off access to this asset class to global retail and institutional investors who are not energy industry participants, and (iii) destroy opportunities for liquidity by holders of noncontrolling interests in energy producing assets. The current state of affairs has remained unchanged for over 100 years, resulting in a persistent lack of liquidity for current owners and a lack of opportunity for prospective investors. The Energy Tokens platform has been developed to address these inherent problems by democratizing energy investment opportunities, creating liquidity for illiquid energy investments, and facilitating better access to capital for energy development projects.”


About Energy Tokens

Energy Tokens was established in 2019 by Ziyen Energy in collaboration with leading blockchain, data analysis, tokenization, regulatory and trading specialists to develop the Energy Tokens Asset Trading Platform. The Energy Tokens Asset Trading Platform provides a means for tokenizing ownership interests in energy producing assets using permission-based blockchain technology.

About Ziyen Energy.:

Ziyen Energy. is a technology-driven energy company incorporated in the State of Wyoming, U.S.A. in April 2016. Originally formed as a software company providing information on the oil, gas, power and energy sectors, Ziyen specializes on business information, contracts, news and information by developing cutting edge procurement and supply chain software to provide clients with intelligence on industry specific government and private contracts. In addition, Ziyen Energy currently owns interests in oil assets based in Texas and the Illinois Basin, which covers Illinois, Indiana and Kentucky. The equity of Ziyen Energy has been tokenized and issued as ZiyenCoin which is offered for sale as a Security Token pursuant to SEC Rule 506(c) of Regulation D.


Image by Zbynek Burival on Unsplash

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