Tezos Blockchain Chosen for Development and Operation of Biomass Project
In a global first, the leading capital markets technology business Globacap has announced the launch of a blockchain-based algal biomass project. This project will be constructed on the Tezos blockchain, which is known for its high level of energy efficiency. The project will assist in the creation, building, and operation of algal biomass farms. Sustainable Impact Token (SIT) will be in charge of both the development and operation of the project. The asset-backed finance market and the cryptocurrency market are two of the most rapidly expanding investor marketplaces in the world. This endeavor will employ blockchain technology to bridge the gap between these two markets.
The algal biomass farms operated by SIT are solely driven by renewable energy sources, and as a result, the protein they generate is of the highest possible grade and is not derived from animals. These algae farms are not only a net generator of renewable energy but also remove significant quantities of carbon dioxide from the environment. The SIT project is now providing financial assistance to a “proof of concept” algal biomass farm that is being developed in Europe. This farm will use environmentally friendly technology that has been patented.
Myles Milston, CEO of Globacap said: “Participating in this ground-breaking effort represents a significant achievement in our continuous aim to facilitate the generation of frictionless assets and the transferability of those assets. When using Globacap, the process of raising money is wholly digital, mostly automated, transparent, safe, and compatible with applicable regulations. The manner that this market may function as a result of our collaboration with SIT and Tezos has been fundamentally altered.”
In the next five years, it is anticipated that the $5 billion algal biomass industry would increase at a compound annual growth rate of 6.3%, and the success of the project will offer the base on which to expand internationally. Tokens reflecting investors’ preferred shares in the project are distributed to them by SIT. These tokens are generated by smart contracts that are implemented on the proof-of-stake Tezos blockchain. Carbon credits that are produced as a byproduct of algae farming will be tokenized and turned into Algaecoin. Algaecoin is a tokenized currency that represents carbon credits that can be traded.
“We can make significant and impactful strides toward sustaining our planet for future generations by bringing agri-tech solutions and carbon credit-backed assets into private markets and beyond,” added Milston. “These are steps that we can take to ensure that our planet is habitable for future generations.”
Through the use of Tezos token contracts that are consistent with FA2 standards for holding and settlement, the SIT offering was intended to make frictionless transferability possible while remaining in full compliance with securities regulations. This innovative product creates a compelling investment vehicle that is enabled by blockchain technology by linking the worlds of sustainable asset-backed investments and cryptocurrency investments together.
Mason Edwards from Tezos Foundation said “As the world continues to place a focus on finding answers to the macro concerns of food shortages and the generation of sustainable energy, there has been an increase in the demand for investment vehicles that may also assist these goals. We are delighted that Tezos has been selected by Globacap to serve as the driving force behind their innovative blockchain-based asset-backed product.”
Tezos is a blockchain network that is both open source and efficient in its use of energy. It is powered by a worldwide distributed network of users and validators. Businesses and construction firms from all around the world are putting Tezos to use in initiatives that investigate the feasibility of using blockchain technology as a method for fostering environmentally responsible innovation. The Cambridge Centre for Carbon Credits (4C), which was recently announced by Cambridge University, is in the process of creating a trusted decentralized marketplace on Tezos. This marketplace will allow buyers of carbon credits to confidently and directly fund trusted nature-based projects by connecting corporate funders with conservationists, using automated and transparent global oracles.
Globacap is dedicated to facilitating the adoption of tokenization for the vast majority of asset classes and to provide a solution for digital securitization to the world’s financial markets. Blockchain technology makes it possible to trade investments that were previously illiquid in an efficient manner, in a matter of seconds rather than weeks, and with minimum overhead costs. By providing private placement, securities issuance, maintenance of securities registries, and liquidity solutions, Globacap is working toward its goal of ushering the antiquated procedures that underpin the capital markets into the modern era.
Peter Henderson, the chairman and founder of Sustainable Impact Token, had the following to say about the company’s vision: “Our vision is to play our part in addressing some of the real challenges of our time – how can the growing world population be fed sufficiently and nutritiously? And can this ambition be achieved in a way that improves, rather than harms, the environment? We are certain that our strategy is beneficial on all of these fronts, and we are aware that the investing community is eager to go on this trip with us.
“The SIT delivers a one-of-a-kind investment opportunity that is supported by our three primary pillars, which are food security, renewable energy, and carbon reduction.” We envisioned organizing the offering in a way that was forward-thinking, open, and trustworthy. An excellent return is being given to investors in a genuine asset, but via the use of digital technology. Investors have the option of making their investments using either fiat currency or cryptocurrencies.
“Bringing the token offering to market has been remarkably seamless, which is a tribute to our partners at Globacap, Tezos, and Lumin Capital,” said the CEO of Lumin Capital.