Enegra migrates digitized equity tokens from Ethereum to Polygon blockchain
The firm selected the Polygon blockchain for its low transaction fees and fast transaction time.
Enegra Group, a commodities trading firm based in Malaysia with a net asset value of $28 billion, has migrated its equity-tied EGX security tokens to the Polygon (MATIC) blockchain from Ethereum (ETH). In 2019, Energra tokenized 100% of its equity, enabling shareholders to digitally exercise their dividend, voting and governance rights. Both the initial tokenization and token migration were facilitated by Tokeny, an asset tokenization and compliance infrastructure provider.
Matthew Averay, managing director and CEO at Enegra, said:
We tokenized our equity to improve liquidity. And, now that the technology is available for faster, cheaper and compliant transactions on the blockchain, we wanted our investors to take advantage of it. Polygon and Tokeny provided the complete infrastructure we needed to do so, and we are extremely pleased with the results.
Meanwhile, Sandeep Nailwal, co-founder at Polygon, commented:
The tokenization of real-world assets and financial securities is probably the next big wave in DeFi, and we are excited to see our partner, Tokeny, bring qualitative and compliant assets to the Polygon network. By leveraging our infrastructure with the right software provider, such as Tokeny, businesses can quickly deploy or convert their assets to Polygon.
Enegra is one of the world’s first regulated companies to issue equity-backed digital security tokens, under security token code EGX on the Polygon network.
— Polygon | $MATIC (@0xPolygon) November 5, 2021
Finally, Luc Falempin, CEO at Tokeny Solutions, added the following statement:
Issuers of tokens don’t need to worry anymore about being blocked on a blockchain forever. Without losing any history, we now have the tools and processes for smooth migrations from one network to another.
Polygon is a protocol designed for scaling and developing infrastructure on the Ethereum blockchain. According to PolygonScan, the network processes over 3 million transactions per day and has approximately 105 million unique wallet addresses. Altcoin blockchains with low transaction costs continue to surge in popularity as of late, due to high gas fees on the Ethereum network — which currently hover around $153 per smart contract execution.