ADI Chain and Shipfinex are collaborating to tokenize commercial ships, aiming to unlock the $680 billion ship-finance market.
ADI Chain and Shipfinex Partner for Ship Tokenization
In a significant move for the maritime finance sector, ADI Chain and Shipfinex have announced a collaboration aimed at tokenizing commercial ships. While no tokens have been issued yet, this partnership is poised to reshape access to the $680 billion ship-finance market, which currently relies on traditional financing methods.
The global fleet of commercial ships is valued at approximately $2 trillion, but financing options are limited, primarily serving a small circle of established shipowners and banks. This collaboration seeks to democratize access to ship financing by leveraging blockchain technology, thereby attracting a wider range of institutional investors.
“Maritime finance has the potential to become a major real-world asset category due to its scale and the tangible assets involved,” stated Ramana Kumar, President of the Stablecoin Ecosystem at ADI Foundation. The initiative aims to extend beyond conventional financial products, incorporating physical assets like ships into the tokenization framework.
Shipfinex will handle the identification of suitable vessels, structuring of financial deals, and valuation assessments. Meanwhile, ADI Chain will focus on creating blockchain tokens for these transactions and facilitating payments using stablecoins pegged to currencies like the UAE dirham and the U.S. dollar. Initially, investment opportunities will be available only to qualified institutional participants.
According to Capt. Vikas Pandey, CEO of Shipfinex, this partnership will establish a regulated digital avenue into ship financing, ensuring that each financial instrument is directly linked to a tangible vessel and its economic framework. Although no maritime asset tokens have been issued yet, about 35 vessels valued at around $500 million have been identified for potential tokenization, pending regulatory approval.
Investors in these future tokens may benefit from secured loans against the ships, revenue shares from shipping contracts, or interests in the vessels' value. However, it's important to note that token holders will not have legal ownership of the ships; the tokens will represent financial claims rather than ownership rights.
The maritime shipping industry, responsible for over 80% of global trade by volume, underscores the vast potential for tokenization in this asset class, which is currently valued at approximately $38 billion. While ADI and Shipfinex are entering a competitive space, with other companies like Galactica and Ethra Ship already active in maritime tokenization, their initiative marks a notable step towards innovating ship financing through blockchain technology.
ADI Chain, based in Abu Dhabi, is an institutional blockchain platform launched by Sirius International Holding, a subsidiary of International Holding Company (IHC). The platform has already facilitated a $30 million transaction using its dirham-backed stablecoin, DDSC, approved by the UAE Central Bank.
