Oil Tokenization: what to know
- 1 token = 1 metric tonne of EN590 diesel in the Phase 1 programme
- ERC-1400 security-token standard with embedded transfer restrictions
- Mint, escrow lock, loading, discharge and burn each produce a searchable hash
- Qualified and institutional investors only, after KYC / AML onboarding
- Legal basis: Swiss Distributed Ledger Technology Act (DLT Act 2021)
Tokenization and tracking
The cycle is simple: tokens are minted for the cargo, the buyer’s bank funds an escrow account, the vessel loads and discharges, and on settlement the tokens are burned. Every step is visible in the blockchain tracker and the cargo can be followed on the vessel tracking page.
Oil Tokenization in Singapore
Singapore is one of the world’s main oil trading and bunkering centres, and Asian counterparties are a natural audience for tokenized cargo exposure. Investors in Singapore should confirm how local securities and licensing rules apply to them before participating. More on Singapore.
Oil Tokenization in Switzerland
PEGSTO AG is a Swiss Aktiengesellschaft domiciled in Zug, in Switzerland’s Crypto Valley, and issues under the DLT Act 2021, which gives ledger-based securities a clear legal basis in Swiss law. More on Switzerland.
Frequently asked questions
What is oil tokenization?
It is the representation of a quantity of physical oil as a digital token on a ledger. At PEGSTO AG each token represents one metric tonne of a specific cargo and is burned when the cargo is delivered and settled.
Is oil tokenization legal in Switzerland?
Switzerland’s DLT Act 2021 created a legal basis for ledger-based securities. PEGSTO AG issues within that framework and the FINMA regulatory framework; offerings are limited to qualified and institutional investors.
Can I verify a token?
Yes. Every mint and burn hash can be searched in the public blockchain tracker by token hash, trade ID, vessel, origin or reference.
Related: Trading Oil · Vessel tracking · Diesel Fuel (EN590) · Switzerland
Product descriptions are general market information. PEGSTO AG currently issues tokens for EN590 diesel (Phase 1); other products are planned or subject to counterparty due diligence and availability. Nothing on this page is an offer of securities.
Request access to PEGSTO programmes
Qualified and institutional investors in Switzerland, Singapore and elsewhere can request programme documentation and a briefing.