Global Settlement Facilitates $75 Million Tokenized Oil and Gas Acquisition in Latin America

Global Settlement, a specialist in real-world asset tokenization, has facilitated a $75 million acquisition of an operational oil and gas facility in Latin America. This transaction marks a significant milestone as it is the first time a fully tokenized capital stack has been used to acquire an operational energy asset. The deal was completed using stablecoins and tokenized debt and equity through Global Settlement's GSX Protocol, benefiting Feniix Energy, a company focused on acquiring and operating energy assets in the region.

The transaction was finalized last week, with further details remaining confidential due to regulatory requirements. This landmark deal highlights the growing interest in tokenization as a transformative force in capital markets. By leveraging blockchain technology, tokenization simplifies cross-border transactions, accelerates settlements, and opens new liquidity channels. The tokenized real-world asset (RWA) market is projected to grow significantly in the coming years, with estimates ranging from $2 trillion to $18 billion.

According to Alejandro Uribe, a director at Feniix, the integration of blockchain technology in this deal achieves unprecedented efficiency, security, and transparency. Global Settlement's GSX Protocol played a crucial role by coordinating stablecoin flows between parties, sourcing vendors, and providing the necessary technical infrastructure. This process demonstrated that tokenization and stablecoins could reduce cross-border settlement times in Latin America from several days to just minutes, compared to traditional banking systems.

Tokenization also presents new opportunities for raising funds in commodity-related investments across emerging markets, bypassing traditional capital markets. Kyle Sonlin, founder of Global Settlement, believes that commodity tokenization is a key growth opportunity for emerging markets that lack access to traditional financial services. This is particularly relevant for sectors like refineries, mines, and other natural resource products, which contribute significantly to GDP but face challenges in accessing debt and equity capital.

For Global Settlement, this deal served as a test of its capabilities and a blueprint for future transactions. The company aims to expand its services and replicate this success in more merger and acquisition deals. The primary goal of building the GSX Protocol was to quantify the benefits of tokenization for issuers and family offices, paving the way for broader adoption in the financial landscape.