Enegra is now preparing to release its innovative Enegra Offtake Agreement (EOTA) debt-backed security tokens onto the market, allowing for anyone to participate in the trade-finance of commodities and earn a fixed income from their EOTA tokens. There will also be a convertible option that allows for the exchange of EOTA for EGX.
Tokenization provides various advantages for the company and its stakeholders:
EGX and EOTA are available to anybody that passes the KYC/AML verification. This provides Enegra, as the issuers, with a global pool of capital and potential investors. Investors also benefit from the fractionalization of these larger assets and opportunities, formerly only available to institutional and accredited parties.
Investors are able to trade 24x7 in multiple centralized and decentralized markets, OTC, and peer-to-peer. The fractionality of security tokens is also a major enabler of this near-term liquidity. In the near future, token-holders will also be able to stake their tokens for increased yield and even borrow against their tokens. This in turn leads to a greater pool of capital available for Enegra to use in financing commodity trades.
Transparency of transactions from miners to consumer
One of the major ways of scaling the commodities industry is maintaining high transparency of transactions. Blockchain provides a uniform method of verifying and tracking data which makes reporting and auditing much easier. Transactions of security tokens are easy, traced, verified, and tracked on the blockchain thereby reducing the occurrence of frauds, errors, and losses.
Other impacts of security tokens on commodity trading include scalability, efficiency, accuracy, simplified auditing processes, reduced paperwork, reduced reliance on third parties, lowered issuance fees, and many more.