The groundbreaking acquisition of Latin American working oil and gas facilities worth $75 million was completed using stubcoin and tokenized debt and equity through a real-world asset specialist global payments platform, the company told Coindesk.
According to Global Settlement, the purchase – orchestrated for Feniix Energy, a company focused on purchasing and operating energy assets for the region’s purchase and operation.
The deal was finalised last week, said Kyle Sonlin, founder of Global Settlement. Details cannot be made clear due to regulatory requirements, he said.
Institutions are increasingly considering tokenization as the next frontier in the capital market, using blockchain technology to move real-world assets (RWA) assets such as bonds, funds and other securities. It promises simpler cross-border transactions, faster settlements, and new liquidity channels. The tokenized RWA market could grow to trillions of dollars over the next few years. The projection ranges from $2 trillion by McKinsey to $18 billion by BCG and Ripple.
“This transaction will fundamentally transform the financial situation in energy infrastructure,” Feniix Director Alejandro Uribe said in a statement. “Integrating blockchain technology will deliver unprecedented efficiency, security and transparency.
Read more: RWA tokenization will be much faster than you think
Global Settlement’s GSX protocol coordinated stub coinflows between parties across Latin America, procured vendors and supported technical infrastructure for transactions.
The process showed that tokenization and stable rocks could reduce cross-border settlements in Latin American countries, typically from days to minutes through traditional banking systems, Songlin said in an interview with Coindesk.
Tokenization can also unlock more ways to raise funds for product-related investments in emerging markets, while bypassing traditional capital markets.
“I think product tokenization is a key growth opportunity for emerging markets that do not have existing access to traditional financial services,” says Sonlin. “Even debt markets and equity capital are difficult to obtain due to refineries, mines and other natural resource products, despite the majority of GDP coming from these exports.”
For Global Settlement, which operates a Layer-1 network focused on real-world asset transactions across multiple blockchains, the deal was an opportunity to test its capabilities and replicate it in future transactions, Sonlin said.
“The building’s key goal (protocol) was to help quantify the benefits of tokenization to issuers and family offices,” Sonlin said. “We want to expand these M&A (mergers and acquisitions) transactions and do more.”