One of the most promising recent technological innovations for the financial industry is tokenization: converting real-world, traditionally illiquid assets into digital tokens stored on a distributed ledger. Tokenization has expanded beyond cryptocurrencies to encompass real estate, artwork, commodities, and more, allowing Real-World Assets (RWA) to be represented as digital tokens on a blockchain. Tokenization has the potential to reshape global markets, democratizing access to investments and making transactions more transparent and efficient.
Against this backdrop in the real world, producer supply chains such as natural gas production, ammonia production etc. are rapidly transforming, driven by efficiency innovations, carbon taxes and market demand to reduce environmental risks. This transformation requires reliable data gathered uniformly across all supply chain components through a transparent, well-governed process. Such an approach provides investors with critical performance metrics that track progress against environmental targets, enabling producers to meet capital markets stakeholders’ expectations.
The typical processes for due diligence, monitoring, and reporting on this data are often manual, fragmented, and siloed. A more efficient system—one that integrates funding mechanisms with real-time, verified data—is much needed. Tokenization offers a solution - by creating a digital representation of the real-world asset on a blockchain embedding verified environmental metrics to each token. Energy Producers, traders and investors can now gain near real-time insights into the environmental impact of their actions. This improves transparency, reduces risks such as greenwashing risk, and helps ensure capital is directed to legitimate lower-carbon projects.
Tokenization involves transforming the ownership rights of real-world assets into digital representations—called tokens—on a blockchain. These tokens encapsulate not only the value of the asset but also its attributes, such as carbon emissions or energy efficiency data. For energy supply chains, this means each part of the value chain, for example extraction, can be represented as a digital token, with every update recorded in an immutable ledger.
Tokenization changes the game by allowing for near real-time tracking of processes and standardized data reporting. This not only reduces the risk of claims about sustainability through verification but also increases liquidity in sustainable financing by attracting a broader range of investors.
Fiùtur has joined the Canton Network to leverage the necessary infrastructure for sustainable attributes tokenization:
Canton Network
Fiùtur
By merging tokenization technology with standardized, reliable environmental data, the two firms help financial institutions confidently channel resources to real-world projects.
To demonstrate the power of the joint technologies, let’s take the use case of an oil and gas firm that outlines its methane reduction strategy—installing better equipment to detect and prevent leaks, upgrading venting systems, and introducing real-time monitoring devices. Fiùtur’s platform records baseline methane levels, future targets, and data collection methods, creating a standardized performance framework. Using the Canton Network, Fiùtur issues digital tokens representing the process’ attributes, such as methane metrics, updated as improvements are implemented.
Financing of this project can be done through a variety of financial instruments such as green bonds, loans, mutual funds, asset-backed securities etc. Let’s say, a bank lends to the Oil and Gas company through its sustainable financing framework. The loan agreement can reference the digital tokens for performance and include automated clauses. If the company demonstrates a specific reduction in methane emissions—verified by Fiùtur’s data feed—the loan’s interest rate may lower. As the company upgrades its facilities, periodic methane measurements are recorded. Fiùtur validates the data and feeds it securely to the Canton Network, updating token metadata.
The immutable ledger captures all financial transactions and emissions data, enabling automated reporting for regulators and stakeholders. This transparency instills confidence that capital is used for genuine environmental improvements. By meeting or surpassing methane reduction targets, the oil and gas company demonstrates compliance to regulatory requirements with transparency, and may benefit from lower financing costs. The bank, in turn, supports an emissions-reducing initiative—backed by trusted, transparent data—and can showcase tangible results to regulators and investors. If the loan was also digital-native on DLT, other benefits arise such as instant disbursements and settlement.
The tokenization of real-world assets (RWA) is expected to have transformative impacts unlocking new use cases across multiple sectors by leveraging blockchain technology. As adoption grows among institutions and governments, tokenization is poised to redefine ownership, investment, and financial systems globally.