Elmnts Launches Tokenized Mineral Rights Investment Fund On Solana

Elmnts officially went live on the Solana blockchain, offering tokenized investment funds tied to mineral rights royalties.

The new platform offers a new investment avenue for retail and institutional traders to participate in high-yield assets with double-digit potential returns and low entry of $1,000 in investments.

Elmnts Makes Investing in Oil and gas Royalties Easy with Tokenization.

Elmnts said that, as a tokenized investment platform, it launched on Solana to facilitate access to funds underpinned by mineral rights royalties.

Royalties represent the passive income streams emanating from resources such as oil or gas extracted from properties owned by the underlying funds. Independently valued, mineral and royalty interests stand at approximately $700 billion.

Welcome @elmnts_ — tokenizing investment funds backed by oil and gas royalties on Solana ⛽

Try out their public beta, now live! pic.twitter.com/K172Ju9MmR

— Solana (@solana) October 22, 2024

Its launch underlined a growing role of Solana in the tokenized investment area, allowing investors to tap into a new direction that, up until this point, had not been accessible and yielded high returns.

The first beta release of Elmnts will grant access to investment opportunities in oil and gas royalties solely to its registered users, and it will soon expand to other commodities. Founders include Erich Schmidt, COO; Odai Ammar, CEO; Elias Moreno, CTO; James Pacheco, CPO; and developer Leonardo Galante.

Elmnts allows retail and institutional investors to learn about and invest in mineral rights-based tokenized funds. Double-digit yields are promised, and the minimum investment is US$1,000. One fund is offered at the moment, but more will be added soon.

Democratizing Access to High-Yield Investments

Elmnts increase liquidity and access to high-yielding assets previously unreachable by investors.

Mineral rights royalties guarantee long-term stable income from oil and gas, yet the general investment world is virtually unaware and untapped by them.

The platform, based on Solana, will be globally accessible; however, the accessibility of certain funds can also depend on the investor’s location. Indeed, the fast-growing trend of tokenized investment funds has seen the rapid expansion of various real-world assets getting tokenized for easier investor participation.

However, the last few days were not as good for SOL as one would think. The token price declined by 1.56% immediately after the Pump Fun Fee Account sold 40,000 SOL worth $6.68 million. The sale increased the market’s fears about Solana’s further price movement.

Tokenized Finance Takes Off: BlackRock Leads the Way

BlackRock launched the fully digitally native investment product, the USD Institutional Digital Liquidity Fund, based on tokenized US Treasury Bills. In no time, it grew to become the biggest tokenized investment fund, with more than $550 million managed across, says Etherscan.

This move underlines a growing trend in tokenized finance as other significant firms enter the space. Last September, Guggenheim Treasury Securities teamed up with Zeconomy to launch a digital commercial paper fund. Midas also launched two tokenized investment products, mTBill and mBasis, which post more diversification in digital asset investment.

The tokenization of such real-world assets like RWAs, which range from mineral royalties, is one path in nascent growth for the manners through which tokenization can ensure better liquidity, reduce costs, and open up hitherto illiquid investments.

Tokenization on the blockchain provides fractional ownership and, thus, continuous trading. Crypto enthusiasts hailed this as an essential step in changing financial markets forever, and Elmnts here is one of the ways to do that.

The SOL price stood at $156.17, up 1,76%. Some analysts think it could enjoy a 26x increase from its current price and rise to as high as $4,500. This is based on an analysis of a cup and handle pattern that just formed on the coin’s chart.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.