Blockchain-based platform for fractional ship ownership gets important approval

Shipfinex FZCO, which offers a blockchain-based platform for fractional ownership of commercial ships, has received in-principle approval (IPA) from Dubai’s Virtual Assets Regulatory Authority (VARA) for a broker-dealer licence.

The IPA validates Shipfinex’s operational framework, confirming it has met VARA’s rigorous requirements regarding compliance, governance, and security. The next step for the company is to satisfy the remaining conditions required to secure the full virtual asset service provider licence. Using distributed ledger technology to tokenise maritime assets, the platform offers a regulated environment for fractional ship ownership, with complete security, transparency and professional governance.

Shipfinex said the IPA marks a "significant step in establishing a compliant infrastructure for the global maritime industry."

Speaking on the sidelines of the Annual Offshore Support Journal Conference in London in early February, Shipfinex founder and chief executive Captain Vikas Pandey explained the benefit and his inspiration for founding the disruptive maritime financing mechanism.

“Ships are naturally very expensive assets. But with blockchain technology, we can fractionalise the investment, making it accessible to everyone,” said Mr Pandey. “Whether it is a movie, art, wine, real estate – anything can be tokenised. So, if real estate can be tokenised, why not ships?”

For shipowners, Shipfinex opens a new avenue to finance fleet investment, allowing an owner to tokenise ownership of an existing asset or assets to fund acquisitions or fleet renewal. Before a ship is listed on the platform, it goes through a strict, secure vetting process, said Mr Pandey. “We vet the company, its previous contracts, how much its ships made, get independent valuations and perform a full due diligence of the owners and assets. Once that’s done, we will legally fractionalise the special purpose vehicle (SPV). According to Shipfinex, the SPV provides legal protection for owners and separates the operations of the ship from the parent company. It also provides a clear legal title to the fractional ownership represented by maritime asset tokens. The owner can decide how many tokens it wants to sell on the exchange to registered users on the platform,” he explained.

Registered investors – who can be private, institutional investors or even banks – on the Shipfinex platform can buy, sell, and earn dividends from tokenised maritime assets.