Magma Maritime, a new London-based shipping financier, is set to provide alternative finance through tokenisation to enable fractional ownership of cargo ships
Magma Maritime said these asset-backed tokens will be tradeable on a fully regulated exchange, resulting in a secondary market for token holdings.
The group said it is in advanced negotiations with potential investors to raise an initial US$200M to purchase modern dry bulk cargo vessels, which will have a tokenised ownership structure.
The new offering is aimed at shipowners who would like more manageable shipping holdings and for institutional investors seeking direct exposure to the shipping market, but who may lack the technical knowledge.
The offering is also of interest to traditional financial institutions looking to refinance their existing debt exposure to this asset class.
Secondhand vessels purchased would ideally be no older than five years old and upgraded to achieve the highest sustainability rating in accordance with the Poseidon Principles.
Magma Maritime’s executive team also counts representatives of John C Hadjipateras & Sons, a London-based ship agent with dry bulk expertise. Magma Maritime cofounder John M Hadjipateras said the focus on sustainability will mean greater use of newer and more efficient vessels.
Adding “our new proposition would allow this to happen in a cost effective and efficient way. It also makes it easier for institutional investors to gain exposure to the maritime sector, diversifying their portfolios further with asset-backed tokens.”
Magma Maritime chairman Andrew Graham said the time is right to launch a tokenised finance proposition for the maritime industry as the concept is now “much better understood, and access to finance in the maritime sector has become much harder to secure.”
“In recent years the sector has seen a dramatic reduction in the number of banks offering ship finance, prompting a real need for a new financing approach. We believe a sustainable focus is now an imperative for the sector to thrive and Magma Maritime can help deliver this with token financed fleets.”