Elmnts, a tokenized investment platform, has recently made its debut on the Solana blockchain network. The platform aims to simplify the process for traders looking to invest in funds backed by mineral rights royalties.
Mineral rights royalties are a type of passive income generated by companies involved in extracting resources like oil or gas from properties owned by the fund. According to energy market analytics company RBN Energy, mineral and royalty interests have an estimated value of $700 billion.
Both retail and institutional investors who meet the necessary qualifications can explore tokenized funds based on mineral rights, make investments, and monitor their portfolio’s performance directly on Elmnts’ platform. The company has stated that the funds on Elmnts will offer double-digit yields, with a minimum investment requirement of $1,000.
Currently, the platform has launched with one fund, but there are plans to introduce more in the near future.
James Pacheco, Chief Product Officer at Elmnts, shared with Decrypt, “Our goal is to provide liquidity and accessibility to high-yielding assets that are typically difficult to access. Mineral rights are a prime example as they generate consistent, long-term income through oil and gas royalties, yet many people are unaware of their existence, let alone how to get involved.”
While the Solana project will be accessible globally, access to specific funds may vary depending on the investor’s country of residence, Pacheco noted.
The popularity of tokenized investment funds has been on the rise in recent months, leading to the creation of new funds based on various tokenized tangible assets.
Last spring, BlackRock introduced its USD Institutional Digital Liquidity Fund, which is based on tokenized US Treasury Bills and currently stands as the largest tokenized investment fund with over $550 million in assets under management, according to Etherscan data.
In a similar vein, Guggenheim Treasury Securities partnered with blockchain technology firm Zeconomy in September to launch a fund centered on digital commercial paper. Additionally, Midas unveiled two tokenized investment products based on mTBill and mBasis earlier this month.
Edited by Stacy Elliott.