BOOM! It’s on the Blockchain is back with our 14th episode. For this episode Alastair Caithness, Ziyen Energy CEO, is interviewed by Tina Konstant discussing the democratization of ownership of energy assets.
Unlike corporate equities which trade on liquid stock markets like the NYSE or Nasdaq, currencies and commodities which trade on exchanges like the CME or ICE or in inter-bank markets, or corporate debt which is traded in a private secondary market among sophisticated institutional investors, no unified liquid market presently exists for direct investment in energy infrastructure assets.
The absence of a liquid market for energy infrastructure assets is largely due to (i) the economic and financial attributes of these assets, (ii) the securities, tax and real estate laws which govern them, and (iii) information asymmetry and the high cost of privately negotiated transactions.
There are a variety of economic interests in any energy infrastructure asset. In this podcast Caithness discusses how the economic rights in an underlying energy asset is preserved through their model and how the rights of the holder of the applicable tokens are preserved without altering through tokenization.