Thursday, May 23, 2024
Editor's PickAustralian EV tech firm issues Shariah compliant token

Australian EV tech firm issues Shariah compliant token

Brighsun EV Group, an Australian firm focusing on new energy technology, has issued the 2UT STO token, a Shariah compliant security token also known as RAMZ.

RAMZ is listed on Green-X, an Islamic ESG digital asset exchange licensed by Malaysian offshore center, Labuan Financial Services Authority (Labuan FSA), and began trading on the 23rd October.

The token is the first Islamic digital asset to be launched under Labuan’s Islamic Digital Asset Centre (IDAC) initiative.

“We intend to use the funds raised to initiate the first batch of car production. We are committed in delivering the first car to our customers in a year’s time,” said Brighsun CEO Nicholas Lee. The company previously mentioned that it plans to roll out its first EV products in the Middle East, Europe, Australia and Malaysia in 2024.

The group through its subsidiary, 2U, has developed proprietary lithium iron phosphate battery and lithium sulphate solid state battery that could achieve cell density of 350-518Wh/Kg to power electric vehicles (EVs).

Brighsun in April revealed that it was ready to mass produce these batteries on a commercial scale, targeting both commercial and consumer transport which include heavy-duty trucks, buses, long distance coaches and SUVs.

It had signed a general cooperation agreement on EV sales with the middle East, a contact with Switzerland for five prototype vehicles and an intention of 95 EVs.

In October, it announced that its 2U Chat EV had been tested and verified by SGS, a car and vehicle testing company, to be able to travel a distance of 1,058 kilometers on a single charge.

The firm intends to distribute social dividends generated from potential carbon credits arising from the 2U Chat EV to 2UT security token holders.

Islamic focus

Brighsun EV Group’s decision to list on Green-X and to assume Shariah compliance does not come as a surprise considering that the company was incubated by Greenpro Capital Group, the Kuala Lumpur-headquartered Nevada corporation which fully owns Green-X.

Greenpro Capital has a strong Islamic ESG focus. Apart from setting up Green-X as an Islamic digital exchange, the firm is also part of a public-private partnership investment agreement to establish a Halal digital finance and economic zone in Brunei.

Establishing Green-X in Labuan was a strategic decision given Labuan FSA’s IDAC initiative which looks to support ecosystem participants with Shariah compliant blockchain. Recently, Labuan FSA’s Fusang Exchange listed the first digital sovereign-linked Sukuk.

The Malaysian government last month unveiled new tax incentives in its Budget 2024 to support Labuan entities engaged in Shariah compliant finance activities including Islamic token issuers, Isalmic digital banking and Islamic digital exchange as well as Ummah-linked companies (those involved in Islamic social finance activities).

“The full income tax exemption for five years would give us great incentives to continue promoting Islamic finance activities in this region,” said Dr Lee Chong Kuang, CEO of Greenpro Capital. “We look forward to a few more STO listings on Green-X before the year ends.”


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