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Home DeFi Web 3

Decrypt: Solana Protocol Elements Introduces Tokenized Mineral Rights Platform

Liz Napolitano by Liz Napolitano
October 22, 2024
in Web 3
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Decrypt: Solana Protocol Elements Introduces Tokenized Mineral Rights Platform
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Tokenized investment platform Elmnts has launched on Solana, aiming to make it easier for traders to invest in a range of funds backed by mineral rights royalties.

Mineral rights royalties are a form of passive income generated by companies that extract resources such as oil or gas from fund-owned properties. Energy market analytics company RBN Energy estimates that mineral and royalty interests amount to $700 billion.

Qualified retail and institutional investors can browse tokenized mineral rights-based funds, invest in them and review their portfolio’s performance directly on the platform, Elmnts said Tuesday in a statement. The company said funds on Elmnts will offer double-digit yields, with minimum investments set at $1,000.

The platform has launched with one fund, with plans to add more soon.

“Our vision is to bring liquidity and accessibility to high-yielding assets that are otherwise hard to access,” Elmnts Chief Product Officer James Pacheco told Decrypt. “Mineral rights are a perfect example—they generate predictable, long-term income through oil and gas royalties, but very few people even know they exist, much less how to participate.”

The Solana project will be available “virtually everywhere,” access to certain funds could differ based on the client’s country of residence, Pacheco said.

Tokenized investment funds’ popularity has skyrocketed in recent months, inspiring the creation of new funds based on all kinds of tokenized tangible assets.

BlackRock last spring launched its USD Institutional Digital Liquidity Fund based on tokenized US Treasury Bills — the largest tokenized investment fund as of publication time with more than $550 million assets under management, according to Etherscan data.

Meanwhile, Guggenheim Treasury Securities partnered with blockchain technology firm Zeconomy in September to launch a fund based on digital commercial paper, while Midas earlier this month launched two tokenized investment products based on mTBill and mBasis, respectively.

Edited by Stacy Elliott.

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In the ever-evolving landscape of investment opportunities, Elmnts has emerged as a pioneer by launching a tokenized investment platform on the Solana blockchain. This revolutionary platform aims to simplify the process of investing in funds backed by mineral rights royalties, offering traders a new avenue to diversify their portfolios.

Mineral rights royalties represent a lucrative form of passive income generated by companies engaged in extracting valuable resources like oil and gas from designated properties. According to estimates by energy market analytics firm RBN Energy, mineral and royalty interests currently amount to a staggering $700 billion, highlighting the immense potential of this asset class.

Elmnts opens the doors for both retail and institutional investors to explore and invest in tokenized mineral rights-based funds seamlessly. By offering a user-friendly interface that allows investors to monitor their portfolio’s performance in real-time, Elmnts aims to democratize access to high-yielding assets that were previously out of reach for many.

With minimum investments starting at $1,000, Elmnts ensures that a wide range of investors can participate in these funds, offering attractive double-digit yields that promise substantial returns over time. The platform has kickstarted its operations with an initial fund and plans to introduce more options in the near future, providing investors with a diverse array of investment opportunities.

James Pacheco, Chief Product Officer at Elmnts, shared his vision for the platform, emphasizing the importance of bringing liquidity and accessibility to high-yielding assets such as mineral rights. He highlighted the long-term income potential of mineral rights royalties derived from oil and gas extraction, pointing out that despite their profitability, these assets remain relatively unknown to many investors.

While Elmnts’ tokenized mineral rights funds are set to be available on the Solana blockchain, Pacheco noted that accessibility may vary depending on clients’ country of residence. This global reach underscores the platform’s commitment to providing investment opportunities to a broad audience while complying with regulatory requirements across different jurisdictions.

The surge in popularity of tokenized investment funds has been a defining trend in the financial market, spurring the creation of innovative funds based on tangible assets represented in digital form. Industry giants like BlackRock have introduced tokenized investment products, such as the USD Institutional Digital Liquidity Fund backed by tokenized US Treasury Bills, showcasing the growing acceptance of digital assets in traditional finance.

Collaborations between traditional financial institutions and blockchain technology firms have paved the way for new investment opportunities, with Guggenheim Treasury Securities partnering with Zeconomy to launch a fund based on digital commercial paper. Similarly, Midas has unveiled tokenized investment products linked to mTBill and mBasis, reflecting the industry’s move towards embracing digital assets as a legitimate investment class.

As the investment landscape continues to evolve, Elmnts stands at the forefront of innovation, offering a gateway to previously untapped investment opportunities in mineral rights royalties. Whether you’re a seasoned investor or exploring new avenues for wealth creation, Elmnts provides a platform that marries traditional investment principles with cutting-edge blockchain technology, opening up a world of possibilities for financial growth and diversification.

Embrace the future of investing with Elmnts and discover a world of untapped potential in mineral rights royalties—an investment opportunity like no other. Join the movement today and experience the power of tokenized assets in reshaping the way we invest, earn, and grow our portfolios.

DeFi Daily News



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