Saeed Al-Marri on tokenising ships: lowering entry costs without solving shipping’s liquidity problem

Tokenising ownership of commercial vessels can open one of global finance’s most exclusive asset classes to smaller investors, but it cannot turn ships into instantly tradable assets, according to Saeed Bin Saleh Al-Marri.

The CEO of Ethra Invest and Ethra Ship believes breaking up ownership of multi-million-dollar vessels into digital units can reduce the high capital barrier that has long limited maritime shipping to institutional funds, state-backed syndicates and long-established family groups.

Dry bulk carriers and container ships typically cost from around $30m to more than $100m, a price range that has historically kept direct participation out of reach for most investors.

Al-Marri is seeking to change that by combining real-world asset (RWA) tokenisation with a traditional private equity framework, using blockchain technology to support asset ownership, trade settlement and, in the longer term, the vast investment required to decarbonise global fleets.

Lowering barriers without bypassing rules

By issuing digital tokens that each represent a fraction of a ship-owning structure, Ethra’s model is designed to give smaller investors controlled exposure to maritime assets that were once reserved for major players.

“Shipping has traditionally been difficult for smaller investors to access,” explains Al-Marri. “Tokenization can divide an interest in a properly structured maritime investment vehicle into smaller digital units. This reduces barriers to entry, makes ownership records more efficient, and provides better visibility over vessel utilisation, charter income, expenses, and distributions.”

He stresses, however, that tokenisation does not provide a shortcut around financial regulation and does not remove the fundamental illiquidity of the underlying asset.

Ethra deliberately separates its utility and governance token from the regulated investment layer. Economic exposure to ships is housed in Special Purpose Vehicles (SPVs), which are ring-fenced for investors who meet regulatory requirements in the relevant jurisdictions.

Addressing expectations around trading activity, Al-Marri argues that secondary markets must be built on realistic assumptions rather than marketing claims.

“Tokenization cannot automatically make an illiquid vessel fully liquid. Any platform suggesting otherwise creates false expectations. A credible secondary market relies on transparent asset valuations… Most importantly, secondary trading must never interfere with operations. The professional manager remains fully responsible for chartering, maintenance, insurance, and financingregardless of how frequently tokens change hands.”

Law of the sea still trumps code

Turning a vessel into on-chain tokens introduces complex legal questions, particularly in the event of default or disputes when the ship may be operating thousands of miles from any court.

Al-Marri is clear that centuries of maritime law cannot be displaced by self-executing software.

“A smart contract cannot be physically enforced against a vessel. Legal enforcement still depends on recognised ownership rights, security documents, and the courts. The vessel is owned by a dedicated SPV, and legal, corporate, and blockchain records must all reflect identical investor rights.”

While smart contracts can automatically pause transfers or apply administrative restrictions on-chain, he notes that physical enforcement actions – such as arresting or selling a ship – still require traditional mechanisms including ship mortgages, flag-state regulations and orders from maritime courts.

Digital documents held back by legal gridlock

Beyond investment access, Al-Marri sees a wider digitalisation challenge across global shipping, where paper-based processes continue to slow trade and increase costs through delays, demurrage and frictions in trade finance.

Despite long-running efforts to introduce digital bills of lading, he argues that the main obstacle is not technology, but legal and institutional coordination.

“The greater challenge is getting governments, banks, carriers, insurers, customs authorities, and cargo owners to accept the same legal and operational standards. A bill of lading is more than a receiptit represents title to cargo and serves as collateral for banks.”

For Al-Marri, simply swapping paper for isolated digital platforms – each operating as a closed system – fails to address the real issue. He believes effective reform depends on cross-border legal recognition and open standards that can be adopted globally, rather than on competing proprietary solutions.

Stablecoins, Letters of Credit and a hybrid approach

Round-the-clock settlement using stablecoins is often promoted as a way to modernise trade payments, but Al-Marri rejects the idea that smart contracts will render traditional Letters of Credit (LCs) obsolete.

“A Letter of Credit provides a regulated bank’s undertaking to pay when documentary conditions are met. Stablecoins accelerate payment execution, but shipping depends on physical verifications: whether cargo was loaded properly, if quality meets standards, whether documents are genuine, and if sanctions apply.”

Ethra therefore favours a hybrid model, combining electronic trade documentation and programmable payment flows with the legal guarantees provided by regulated financial institutions, rather than pursuing a purely crypto-based alternative.

Financing the shift to cleaner fleets

Looking ahead, Al-Marri points to decarbonisation as the sector’s defining financial test. The drive to reach net-zero emissions by 2050 will require significant investment in vessels able to run on green ammonia, methanol and hydrogen, as well as the supporting infrastructure in ports.

Such technologies remain at an early stage, making it difficult for private equity managers to balance climate goals with the need to safeguard investor capital.

“Decarbonisation is clearly the direction of travel, but we must be realistic,” notes Al-Marri. “It would not be responsible to expose investors to all these risks at once. We assess the complete picture: vessel technology, route fuel availability, safety approvals, crew requirements, operating costs, and resale value.”

Ethra Invest’s strategy centres on conservative underwriting practices, securing long-term charters, favouring dual-fuel configurations and continuing to use ring-fenced SPVs for each investment, so that risks remain contained.

“The investment must work under conservative assumptions,” Al-Marri stresses. “We do not back projects that are only profitable if fuel prices, carbon regulations, and subsidies all move in their favour.”

For Al-Marri, the future of maritime finance is not simply about putting ships on the blockchain. Instead, he sees digital tools, legal structures and risk management being combined to channel capital into a more efficient and sustainable global fleet, while recognising that the physical realities of ships and seas still set the ultimate limits.