Elmnts : On-Chain Commodities On Solana

In recent years, blockchain technology has evolved beyond cryptocurrency to include a broad range of real-world assets. These “tokenised” assets bring a unique value proposition by merging traditional asset stability with blockchain’s security and accessibility. 

Elmnts, built on the Solana blockchain, is a leading example. Elmnts focuses on tokenising mineral rights royalties as a novel way for accredited investors to participate in commodities like oil and gas. Let’s explore this innovative platform in detail.

TL: DR📊

• Elmnts brings mineral rights for oil and gas onto the blockchain, allowing investors to buy and trade tokenised commodity assets securely.

• By integrating with Solana’s RWA ecosystem, Elmnts enables transparent, regulated, and efficient investments in physical assets on-chain.

• The platform targets accredited investors, offering fractional ownership of mineral rights and regular royalty-based income from resource extraction.

• Backed by institutional investors, Elmnts recently launched a public beta, marking its early success and growing traction within the blockchain commodities space.

What Is Elmnts?🔍

Elmnts is an on-chain platform that provides accredited investors with access to tokenised commodity assets, particularly mineral rights. Traditional investments in mineral rights offer investors returns derived from royalties on resources such as oil, gas, and other raw materials. 

According to energy market analytics firm RBN Energy, mineral and royalty interests are estimated to be valued at $700 billion, providing a significant market for investors to tap into. However, these assets are generally difficult to access for individual investors due to high entry barriers, regulatory hurdles, and lack of liquidity. 

Elmnts brings these assets onto the blockchain, making them more accessible and liquid, without sacrificing compliance or security. The platform allows investors to browse tokenised mineral rights-based funds, making it easy to invest in these assets and track portfolio performance directly. Funds available on the platform are projected to offer double-digit annual yields, with a minimum investment threshold set at $1,000.

Elmnt’s innovative approach appeals to investors looking to diversify their portfolios with less volatile options compared to more typical crypto assets. Mineral rights and other commodity-backed assets have the advantage of being linked to physical goods, which historically offer more predictable returns than the often volatile cryptocurrency market.

How Elmnts Works: Merging Traditional and Blockchain Finance🔗

The Elmnts platform leverages blockchain to tokenize mineral rights. Through smart contracts, Elmnts represents these assets as digital tokens, allowing investors to easily buy, hold, or transfer them on the blockchain. 

Tokenization also makes it possible to fractionalize ownership, meaning that investors can hold a portion of a high-value asset, like an oil field lease, without purchasing it outright. This lowers the barrier to entry, enabling a wider range of investors to participate in commodity-backed investments​.

In practice, investors can access funds that hold mineral rights leases. The income generated from these leases, such as royalties from oil and gas extraction, is distributed to token holders. 

For institutional investors, Elmnts offers a compliant and streamlined way to manage investments in real-world assets on-chain, bringing both the transparency of blockchain and the reliability of physical commodity investment​.

Deployment and Platform Features 🖥️

Elmnts provides an accessible, user-friendly interface designed to streamline the process of investing in tokenised mineral rights. Investors can sign up on the platform, browse available funds, and make investments in just a few clicks.. 

Currently in public beta, Elmnts is actively onboarding users to experience and give feedback on its platform. Investors can explore the investment opportunities and portfolio tracking features that will define the platform's future full release.

The Elmnts team combines deep experience in mineral rights investing, oil and gas operations, institutional asset management, and blockchain. Their industry connections give them proprietary access to valuable, yield-generating assets that deliver stable returns. Elmnts plans to continue expanding its selection of mineral rights-based funds.

Elmnts Fundraising and Backing 💰

In August 2024, Elmnts successfully raised over $2 million in pre-seed funding to further develop its platform and expand its user base. Key investors in this round included Graph Ventures, Foundation Capital, and B+J Studios, along with Asymmetric and Anagram. 

The funding round also saw participation from prominent figures in the blockchain space, including Solana co-founders Raj Gokal and Anatoly Yakavenko, as well as angel investors like Brian Long from Triton, Austin Federa from Solana Foundation, Mert Mumtaz from Helius, Nom from Bonk, and Stepan Simkin from Squads.

Elmnts plans to use the capital to expand its tokenised commodities ecosystem, add more investment options, and refine its platform to better serve both retail and institutional investors.

Spotlight On Solana’s Growing RWA Ecosystem🌐

Solana’s high-speed, low-cost blockchain infrastructure makes it ideal for handling RWAs, especially those that require frequent transactions or complex smart contracts. Solana’s framework allows for programmable compliance, such as KYC verifications, which has attracted RWA projects aiming to democratize and secure asset ownership and trading​.

Notable projects within the Solana RWA ecosystem include:

• Ondo Finance: Powers Solana’s RWA ecosystem with its USDY token, a yield-bearing stablecoin backed by U.S. Treasuries, which recently reached over $106 million in Total Value Locked (TVL)​.

• Maple Finance: Expands lending opportunities on Solana by creating credit markets for institutional investors, making Solana more versatile for real-world asset-backed loans​.

• Parcl: Provides fractionalized real estate trading through tokenised property shares, making property investment more accessible and liquid.

• Libre Fund: Launched by WebN Group and Laser Digital, Libre Fund brings tokenised trading strategies to Solana, offering broader access to global markets​.

• Solayer: Recently launched $sUSD, a stablecoin that leverages U.S. Treasury yields, adding a new stable, yield-focused option to Solana’s RWA landscape​.

• Credix: Focuses on tokenised credit products, connecting institutional lenders with emerging-market borrowers to create high-yield lending options on Solana.

In addition to these projects, initiatives like Jupiter’s Grand Unified Market Alliance (GUM) contribute to Solana’s RWA growth by creating a consolidated liquidity hub. GUM unites various liquidity providers and market makers, supporting efficient and seamless trading across diverse assets, including tokenised real-world assets. 

Jupiter’s efforts enhance liquidity and trading efficiency on Solana, aligning with the chain's strategy to become a leading platform for both digital and traditional assets.

Conclusion📈

Elmnts is redefining how investors engage with commodities by offering tokenised mineral rights that enhance liquidity, accessibility, and transparency. Its integration into Solana’s robust RWA ecosystem positions it at the forefront of a growing trend that combines the security of blockchain with the stability of physical assets. 

With significant backing, a strong team, and an innovative platform, Elmnts has the potential to transform commodity investments, making them more accessible to a broader range of investors. As the platform continues to evolve and expand, Elmnts is poised to be a key player in the future of tokenised real-world assets.

Join the public beta by visiting app.elmnts.io.

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