The migration from Ethereum to Polygon enables faster transfers of equity-based security tokens with ultra-low transaction fees and puts the tokens on a path to global top 20 market cap status
Tokeny, an asset tokenization and compliance infrastructure provider, has successfully helped Enegra Group Ltd (“Enegra”), a commodities trading firm with approximately $28 billion in net asset value (NAV), migrate its equity-tied EGX security tokens from Ethereum to Polygon.
The migration enables faster end-to-end transfers of EGX security tokens with near-zero transaction fees on Polygon and puts EGX tokens on a pathway to attract global top 20 token market cap status.
In September 2019, Enegra tokenized 100% of its equity and issued EGX equity-backed digital security tokens via Tokeny’s T-REX Platform. Enegra decided to switch to Polygon to address Ethereum’s mounting gas fees and slow transaction fees and improve liquidity for EGX token holders.
The EGX tokens were issued through the T-REX security token standard, now recognized as the ERC3643 by the Ethereum community. Thanks to the cross-chain compatibility of the standard, the migration to Polygon from Ethereum was seamlessly managed over a few days, and investors were able to retain the same wallet address for holding their EGX tokens. After the migration, investors were able to interact immediately with their tokens on Polygon via the same platform but without prohibitive gas fees.
Matthew Averay, Managing Director & CEO at Enegra, said: “We tokenized our equity to improve liquidity. And, now that the technology is available for faster, cheaper, and compliant transactions on the blockchain, we wanted our investors to take advantage of it. Polygon and Tokeny provided the complete infrastructure we needed to do so, and we are extremely pleased with the results.”
Energa’s decision comes at a time of intense interest in tokenization — a means of digitizing any asset and placing it on an immutable blockchain. Equity, funds, debt, and even real estate can all benefit from the added liquidity, efficiency, and transparency tokenization brings. Mid-cap companies, investment banks, asset managers, funds, and stock exchanges from all around the world are already starting to shift towards blockchain-based financial assets.
Enegra Group Ltd, incorporated in Malaysia, enables mid-tier commodity miners in emerging markets to compete globally against larger competitors by providing world-class commodity trading expertise, risk management, logistics, and governance. It currently has mining offtake agreements with 16 mid-tier mines in Southeast Asia with a combined Net Asset Value (NAV) of $US 28 billion, audited by Crowe LLP, a global top 10 accounting and audit firm.
Luc Falempin, CEO at Tokeny Solutions, added: “Our goal is to provide our customers with a flexible and scalable solution for permissioned tokens. Issuers of tokens don’t need to worry anymore about being blocked on a blockchain forever. Without losing any history, we now have the tools and processes for smooth migrations from one network to another. Enegra’s migration has showcased how quickly and easily migration can be done using our technology stack. And, the benefits are realized instantly, which is exactly what investors need and expect.”
Polygon was designed to work in parallel with the Ethereum network to improve functionality and promote infrastructure development. The leading Ethereum scaling platform achieves this via its array of scaling solutions, including Polygon PoS, Polygon SDK, Polygon Avail, Polygon Nightfall, and Polygon Hermez.
Sandeep Nailwal, co-founder at Polygon, commented: “The tokenization of real-world assets and financial securities is probably the next big wave in DeFi, and we are excited to see our partner, Tokeny, bring qualitative and compliant assets to the Polygon network. By leveraging our infrastructure with the right software provider, such as Tokeny, businesses can quickly deploy or convert their assets to Polygon.”
The EGX Security Token found at address 0x8db0a6d1b06950b4e81c4f67d1289fc7b9359c7f on Polygon. The EGX token complies with the ERC3643 standard.
Learn more about Enegra’s case study: click here.
Enegra is an international mineral commodities trading business based in Malaysia. Enegra is proud to be one of the world’s first regulated companies to issue equity backed digital security tokens, under security token code EGX on the Polygon network. Enegra has secured lucrative mining offtake agreements among 16 mid-tier mines in Southeast Asia. This provides Enegra with exclusive access to 1.8 billion tonnes of thermal coal and up to 500,000 tonnes per month of nickel sands. The valuation of these mining offtake assets provides Enegra with an audited Net Asset Value (NAV) of $US 28 billion, audited by Crowe LLP https://www.crowe.com/ a global top 10 accounting and audit firm. Based on total issued supply, each EGX token has a NAV of $US 329, underwritten by an audited balance sheet. Watch Enegra's video here: https://youtu.be/qof1Q915SIg
Tokeny allows financial actors operating in private markets to compliantly issue, transfer and manage securities using distributed ledger technology, enabling them to improve asset liquidity.
Due to disconnected and siloed services that are currently used to enforce trust, private markets experience poor asset transferability with little to no liquidity. By applying trust, compliance and control on a hyper-efficient infrastructure, Tokeny enables market participants to unlock significant advancements in the transferability and liquidity of financial instruments. Tokeny is the leader in its field and in 2020 was named one of the top 50 companies in the blockchain space by CB Insights. The company is backed by Euronext.
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