Fundshing provides specialized commodities tokenization services, enabling asset managers to leverage the advantages of blockchain technology in the commodities market. Tokenizing commodities can enhance liquidity, improve transparency, streamline trading processes, and broaden access to this important asset class.
We remain adaptable to emerging standards and tailor our approach to ensure the optimal functionality and compliance of each tokenization project.
Commodities tokenization is the process of representing ownership rights or claims to physical commodities (e.g., precious metals, energy products, agricultural goods) as digital tokens on a blockchain. These tokens can represent direct ownership of a specific quantity of the commodity, or they can be linked to futures contracts, warehouse receipts, or other commodity-backed instruments. Tokenization facilitates fractional ownership, making it easier for investors to gain exposure to commodities with lower investment minimums.
ERC-20: A widely adopted standard for fungible tokens, suitable for representing commodities that are interchangeable (e.g., one ounce of gold is equivalent to another ounce of gold).
ERC-721: A standard for non-fungible tokens (NFTs), which can be used to represent unique or specific units of a commodity (e.g., a particular batch of ethically sourced coffee beans with detailed provenance information).
ERC-1155: A versatile standard that supports both fungible and non-fungible tokens, offering flexibility for representing diverse commodity types within a single platform.
ERC-1400/ERC-3643: When commodity tokens are classified as securities, we are able to work with these standards, which as mentioned before have all security measures.
Fundshing offers a complete suite of services to navigate the complexities of commodities tokenization, providing asset managers with a seamless and secure path to digital asset integration:
Strategic Advisory – We collaborate with you to assess the suitability of various commodities for tokenization, develop a customized strategy, and align the project with your investment objectives.
Due Diligence and Provenance – We conduct thorough due diligence on the underlying commodities, verifying quality, origin, and ethical sourcing, as appropriate.
Token Design and Issuance – Our team manages the technical aspects of creating secure, compliant, and interoperable digital tokens representing your chosen commodities.
Legal and Regulatory Compliance – We ensure adherence to all applicable regulations, including commodities trading regulations and securities laws, in relevant jurisdictions.
Custody and Storage Solutions – We facilitate connections with secure and reputable custodians for the physical commodities backing the tokens, ensuring the integrity of the investment.
Bringing Liquidity, Transparency, and Global Accessibility to Commodities Markets
Traditional commodity investments require large capital commitments, physical storage, and complex contracts, making them highly illiquid. Tokenization solves this by fractionalizing ownership, allowing investors to buy, sell, or trade smaller portions of assets in a digital, blockchain-secured format. This makes commodities more accessible and creates a liquid secondary market where investors can enter or exit positions with ease.
Tokenization works across multiple commodity sectors, but the best candidates are:
Fundshing helps design tailored tokenization models for each commodity type, ensuring regulatory compliance and seamless integration with existing markets.
Unlike traditional commodity trading, where ownership records are paper-based or rely on intermediaries, tokenization leverages blockchain technology to ensure:
Fundshing simplifies commodity tokenization into a four-step process:
