Crypto startup Energy Substantiation launches blockchain token WTIC backed by physical oil

A Silicon Valley-based crypto startup, Energy Substantiation, has launched WTIC, a blockchain token designed to represent one barrel of West Texas Intermediate (WTI) crude oil, enabling retail investors to own and trade physical oil 24/7. The token mirrors the structure of stablecoins but targets the complexities of oil, a commodity historically restricted to producers, traders, and large institutions. WTIC is pitched as a spot commodity rather than a derivative, aiming to avoid heavy regulatory scrutiny while offering continuous trading—unlike traditional oil futures, which are closed on weekends. The startup is collaborating with oil suppliers and exchanges, including LMAX, to build liquidity, with the current on-chain value of WTIC at approximately $80,000. WTIC tokens are created through a daily minting process, with suppliers feeding oil into the system via reverse Dutch auctions to monetize operational inventories. Investors can redeem tokens at the daily spot closing price, though physical delivery is not expected to be a primary feature. Energy Substantiation’s co-founder, JP Thieriot, argues that while people can own dollars and gold, oil ownership has remained inaccessible to the average investor. The startup faces challenges, including regulatory hurdles, competition from existing futures and crypto derivatives markets, and the need to ensure legal enforceability of blockchain ownership in the physical world. Analysts note that success hinges on attracting energy industry participants rather than just crypto traders. The move comes as demand for round-the-clock oil exposure grows, with platforms like Hyperliquid already offering tokenized WTI and Brent perpetual futures, and CME Group planning to introduce 24/7 trading for smaller crude oil futures by late August.