Question 1

What is tokenisation of ships?

Accepted Answer

Tokenisation of real-world assets including ships means the converting physical or traditional financial assets including ship owning company shares; into digital tokens on a blockchain. These tokens represent co-ownership rights to the underlying asset and can be bought, sold, or traded.

Question 2

What is Shipfinex?

Accepted Answer

Shipfinex is a digital marketplace specialising in maritime asset investments, where physical assets like ships are tokenised into Marine Asset Tokens (MATs) for fractional ownership.

Question 3

How does it benefit shipowners?

Accepted Answer

This allows shipowners to raise capital by selling shares of their vessels to a global pool of investors, providing liquidity without traditional loans or full asset sales. Benefits include faster access to funds for fleet expansion, maintenance, or operations; reduced reliance on banks; and potential for ongoing revenue sharing through dividends from vessel earnings.

Question 4

Who can tokenise their vessel on Shipfinex?

Accepted Answer

Any registered shipowner with a classed, operational vessel (e.g., bulkers, tankers, containers >5,000 DWT) under major flags (Panama, Liberia, etc.). Requirements: Clean title, no liens, audited financials, and KYC/AML compliance. Shipowners will be required to provide documentation to ensure compliance with regulatory requirements.

Question 5

Can shipowners use tokenisation for fleet refinancing or expansion?

Accepted Answer

Yes, tokenise existing vessels to unlock capital for debt repayment, new acquisitions, or fleet upgrades. Example: A shipowner tokenises 25% of a US$10m bulker to raise US$2.5m, using proceeds to fund a deposit or equity on a modern container vessel. The process preserves operational control while providing non-dilutive, low-cost liquidity through fractional equity sales on the Shipfinex platform.

Question 6

What is Know Your Business (KYB) verification, and why is it required for shipowners?

Accepted Answer

KYB is a process to verify the legitimacy, ownership structure, and financial health of your shipping company before you can list assets. It's essential for regulatory compliance and to build investor trust. Unlike individual KYC, KYB focuses on business entities like shipowning firms to mitigate risks in tokenising high-value assets.

Shipfinex currently undertakes KYB through a meticulous, manual process which involves: 
 • Direct engagement via email or face-to-face meetings. 
 • Submission of extensive documentation to validate ownership, legal compliance, financial stability, and operational history of both the vessels and the business itself. 
 • Thorough due diligence procedures by Shipfinex's compliance teams to ensure adherence to international AML/CFT guidelines.

Only businesses that successfully pass this rigorous vetting process can list assets for tokenisation on Shipfinex, ensuring investors have access to thoroughly vetted, compliant investment opportunities.

Question 7

How does the tokenisation process work for shipowners?

Accepted Answer

1. Shipowners list their maritime assets through an SPV (Special Purpose Vehicle). 
2. Undergoes due diligence to verify asset quality, legality, and financial valuation. 
3. Thorough due diligence procedures by Shipfinex's compliance teams to ensure adherence to international AML/CFT guidelines. 
4. The SPV, which holds legal title to the asset, creates the digital tokens. Once this is complete, the offering is submitted to the Shipfinex marketplace to be listed. Verified investors can then review the offering documents and acquire tokens.
5. Investors go through KYC, fund their wallets with USDC, and purchase MATs representing fractional ownership in maritime assets. 
6. Investors earn pro-rata distributions from the net earnings of vessel operations and can exit by selling their MATs in the secondary marketplace on Shipfinex.

Question 8

What happens to ownership rights after tokenisation?

Accepted Answer

Token holders gain a fractional co-ownership interest in the specific ship-owning entity (SPV) that holds the vessel but has no operational say; shipowners/managers retain full control (e.g., chartering, crewing). The specific rights, including any pro-rata distribution from net income, are defined in the official Offering Prospectus for that asset and are governed by the laws of the SPV's jurisdiction.

Question 9

How do I receive funds from token sales, and can I reinvest distributions?

Accepted Answer

Funds from MAT sales are transferred to your wallet in USDC. These USDC funds may be withdrawn (convertible to USD), to your linked bank accounts. For the MAT’s still in your possession, any pro-rata distribution from net income received in USDC, can be utilised to purchase MATs of the same vessel or other vessels.

Question 10

Is it secure for shipowners and investors and what about data protection?

Accepted Answer

The Shipfinex platform  implements industry-standard cybersecurity measures to protect user data and secure the marketplace. The MATs are held in your own personal self-custody wallet, giving you direct control. However, like any investment, this asset class involves significant risks. All participants should read the full  Risk Disclosures on: https://www.shipfinex.com/legal/va-disclosure-2

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