A blockchain-based algae biomass project, which is built on the energy-efficient Tezos blockchain in a world first, has been announced by leading capital markets technology firm, Globacap.
Developed and operated by Sustainable Impact Token (SIT), the project will support the development, construction, and operation of algae biomass farms. The initiative will use blockchain technology to bridge the gap between two of the fastest growing investor markets in the world – asset-backed finance and crypto.
SIT's algae biomass farms produce high quality, non-animal protein, based on a system powered exclusively using renewable energy. These algae farms are absorbing large amounts of carbon out of the atmosphere and a net producer of renewable energy. The SIT project is currently supporting the development of a "proof of concept" algae biomass farm in Europe using patented, sustainable technology.
Myles Milston, CEO of Globacap said: "Being part of this pioneering project marks an important milestone in our ongoing mission to enable frictionless asset creation and transferability. With Globacap, the capital raising process is completely digital, mostly automated, transparent, secure, and compliant. Our work with SIT and Tezos is transformational in the way this market can operate."
The $5 billion algae biomass sector is estimated to grow at a CAGR of 6.3 percent during the next 5 years and the success of the project will provide the basis to expand globally. SIT provides investors with tokens issued via smart contracts deployed on the proof-of-stake Tezos blockchi representing their preferred shares in the project. Carbon credits generated from the algae production will also be tokenized into Algaecoin, a tokenised asset representing tradable carbon credits.
"By bringing agri-tech solutions and carbon credit-backed assets into private markets and beyond, we can make significant, impactful steps towards sustaining our planet for future generations," added Milston.
The SIT offering was designed to enable frictionless transferability in full compliance with securities regulation through the Tezos FA2 compliant token contracts for holding and settlement. This pioneering offering links the sustainable asset-backed and crypto investment worlds together to create a compelling blockchain-enabled investment vehicle.
"As solutions to the macro challenges of food scarcity and sustainable energy production continue to be a global priority, demand for investment vehicles that can also support these objectives are increasing. We are thrilled to see Globacap choose Tezos to power this unique blockchain based, asset-backed offering," said Mason Edwards from Tezos Foundation.
Tezos is an energy-efficient open source blockchain network powered by a globally decentralised network of users and validators. Companies and builders around the globe leverage Tezos for projects exploring the potential for blockchain to be a tool for sustainable innovation. Recently, Cambridge University announced the Cambridge Centre for Carbon Credits (4C) which is creating a trusted decentralised marketplace on Tezos where purchasers of carbon credits can confidently and directly fund trusted nature-based projects tying together corporate funders to conservationists, via automated and transparent global oracles.
Globacap is committed to enabling adoption of tokenization for most asset classes and providing a means for digital securitisation to global capital markets. Blockchain technology enables previously illiquid investment to now be transacted efficiently in seconds instead of weeks, and with minimal overheads. Globacap's mission is to bring the archaic processes behind capital markets into the digital era by offering private placement, securities issuance, securities registry management, and liquidity products.
Chairman & founder of Sustainable Impact Token, Peter Henderson, said: "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, nutritiously and can this ambition be achieved in a way that improves, rather than harms, the environment? We believe our approach helps on all these fronts and know that the investor community is keen to join us on the journey.
"SIT presents a unique investment opportunity that is underpinned by our three core pillars: food security, renewable energy and carbon reduction.
"We wanted to structure the offering using an innovative, transparent and secure approach. Investors are being offered an attractive return, in a real asset, but through digital technology – and they can make their investments through fiat or crypto currencies.
"Bringing the token offering to market has been amazingly smooth, which is a credit to our partners at Globacap, Tezos and Lumin Capital."