Tokenization in the Emirates: 500 million dollars worth of ships will soon float on the blockchain

Thirty-five ships ready to transition to the blockchain. ADI Chain, an institutional infrastructure based in Abu Dhabi, and Shipfinex, a Dubai-based maritime tokenization specialist, are partnering to finance commercial vessels in the form of tokens. An initial portfolio of approximately 500 million dollars has already been identified, but no assets have yet been issued. Here’s an explanation.

Key Points {#h-key-points}

• Shipfinex has an initial portfolio of 35 ships estimated at around 500 million dollars.
• ADI Chain will handle the issuance of tokens and their settlement in stablecoins.
• The tokens will represent a financial claim, not the legal ownership of the ships.
• Shipfinex only has a principle approval from the Dubai regulator.

A maritime market worth 2 trillion dollars {#h-a-maritime-market-worth-2-trillion-dollars}

The value of the global commercial fleet is estimated at around 2 trillion dollars. Its financing alone accounts for nearly 680 billion dollars spread across bank loans, export credit, and leasing contracts.

This market remains primarily reserved for banks, specialized funds, and large shipowners. Each operation requires technical expertise, an analysis of the ship's value, and a legal structure adapted to its flag, insurance, and operating contracts.

The partnership divides these functions between two players. Shipfinex will identify eligible vessels, assess their value, and structure the operations. Its initial portfolio includes about 35 ships with a cumulative amount close to 500 million dollars.

ADI Chain will then transform these financial structures into tokens available exclusively on its network. This institutional layer 2 blockchain was developed by ADI Foundation, with support from Sirius International Holding, a technology subsidiary of the Emirati conglomerate International Holding Company.

Payments can be made using stablecoins in dollars or with the DDSC, a token backed by the dirham and approved by the Central Bank of the United Arab Emirates. The goal is to shorten settlements and avoid certain international bank transfers used in traditional maritime financing.

Tokenization: A token, but no title of ownership {#h-tokenization-a-token-but-no-title-of-ownership}

The exact nature of the tokens will depend on each operation. They may represent a loan secured by a ship, a share of the income derived from its chartering, or an economic interest related to its value.

However, they will grant no direct ownership rights over the hull. The ship will retain its legal owner, flag, insurance, and operator. Each vessel will be placed in a separate vehicle company to isolate its revenues, debts, and risks from those of other operations.

This distinction limits the scope of tokenization. The blockchain automates the issuance, payments, and tracking of financial rights, but it does not replace maritime registries or the hierarchy of creditors. In the event of seizure, accident, or default, maritime law will continue to apply.

The project is also still in the preparatory phase. No maritime token has yet been issued, and Shipfinex only has a principle approval from the Virtual Assets Regulatory Authority of Dubai. This step does not equate to a full operational license. Initially, the products will therefore target only qualified institutional investors.

Maritime financing is not entirely new to the blockchain: Galactica and Ethra Ship are already working on comparable operations. The agreement between ADI Chain and Shipfinex is particularly distinguished by its announced portfolio of 500 million dollars and its settlement infrastructure in stablecoins.

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