OIL1 will be a commodity-backed stablecoin tradeable on cryptocurrency exchanges, with pricing expressed in US Dollars. In practical terms, a single OIL1 coin represents a claim on a barrel of crude oil and can be redeemed for the underlying asset.
Introducing OIL1: Energy’s Digital Future
The Gulf Energy Exchange (GEX) unveils OIL1: a world-first oil-backed stablecoin with verified crude oil reserves.
Announcing OIL1, the world’s first oil-backed digital asset, a stablecoin built on transformative US technologies. OIL1 will be collateralized by verified reserves of Gulf crude oil and pegged to both the U.S. dollar (USD) and the price of Gulf crude oil, creating an unprecedented link between the energy sector and the digital asset economy.
The new digital asset will reshape the foundations of the $2.4 trillion global oil market and the fast growing $260 billion digital stablecoin market, bridging traditional energy commodity assets with advanced blockchain infrastructure.
Download Press Release"OIL1 combines the stability of the U.S. dollar - long the world’s most trusted reserve currency - with the intrinsic value of the Gulf’s most strategic natural resources.
By bridging traditional energy assets with blockchain-based finance, we are creating a secure, transparent, and globally trusted currency for the energy age as an instrument of energy security."
Andre Pienaar, the Chief Executive of C5 Capital.
Oil-backed. Bahrain-based. Powered by Circle.
Oil-Backed
OIL1 will be collateralized by verified reserves of Gulf crude oil.
Reserves
Bahrain-Based
OIL1 will be issued by the Gulf Energy Exchange (GEX) in Bahrain.
Regulatory
Powered By Circle
OIL1 will be powered by Circle’s ARC blockchain infrastructure.
Technology
How It Works
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Q+A
How does the OIL1 coin work?
What benefits does OIL1 provide?
Tokenization provides direct exposure to crude oil and other real world energy assets. Because the coins are traded on cryptocurrency exchanges, they offer 24/7 market access with programmable, near-instant transfer and simultaneous blockchain exchange, reducing counterparty and settlement risk. Also, coins are redeemable, reinforcing ownership of the commodity and providing users with the opportunity to take receipt of the physical asset.
Furthermore, fractionalization enables coins to be broken into smaller denominations, while preserving legal ownership. This broadens access to energy assets by lowering the barrier to entry for retail traders and also helps improve market liquidity.
Why is GEX located in Bahrain?
Bahrain has a strong reputation for robust financial regulation, built up through many decades of experience. OIL1 is a collaboration between US financial technology, Gulf energy and innovation of Saudi Arabia and the forward-thinking regulation of Bahrain.
When will OIL1 and GEX launch?
Bahrain has established a progressive digital asset framework, and further refinements to stablecoin and tokenization rules are expected to be finalized shortly. We anticipate launching OIL1 and GEX in the first half of 2026, subject to approval from the Central Bank of Bahrain.
Who is behind GEX?
GEX is backed by a US investor consortium led by C5 Capital, a US based venture capital and private equity firm with operations in the United Kingdom and Bahrain. GEX is building the platform with market-leading technology and reserve partners, including Circle and Microsoft to support access, redemption, liquidity and price discovery.
GEX is based in Bahrain and will be regulated by the Central Bank of Bahrain.
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Regulatory Information
Disclaimer
This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities, digital assets, or financial instruments, nor does it constitute investment, legal, or regulatory advice. OIL1 and the Gulf Energy Exchange (GEX) are subject to applicable regulatory approvals, including approval by the Central Bank of the Kingdom of Bahrain. No assurance can be given that such approvals will be obtained or that OIL1 will be launched as described. Any references to future functionality, performance, stability, market impact, or regulatory outcomes are forward-looking statements and are based on current expectations and assumptions that involve risks and uncertainties. Actual results may differ materially. Digital assets and tokenized commodities involve risk, including but not limited to market volatility, regulatory changes, technological risk, and liquidity risk. Prospective participants should conduct their own independent due diligence and consult professional advisers before engaging with any digital asset or energy-backed financial product.