LITRO Tokenized Crude Oil Project Launches Testnet, with each token representing 1 liter of crude oil, aiming to go live in 2027

March 12 News, the blockchain tokenized crude oil project LITRO announced that pilot testing will soon begin, with the goal of officially launching in early 2027 and reshaping the global energy trading system through blockchain technology. The project is driven by Baron Lamarre, co-founder of digital asset platform INDEX, who previously served as trading director at Malaysia’s national oil company Petronas.

According to the project plan, LITRO tokens will be backed 1:1 by real oil reserves, with each token representing 1 liter of crude oil. The price will be linked to major global benchmarks such as Brent Crude and West Texas Intermediate. Lamarre revealed that the testnet and product demonstration are expected to be launched between March and May 2026, with the full platform scheduled to go live in January 2027.

The core goal of the project is to digitize the approximately $6 trillion global oil trading system. Currently, traditional energy trading relies on complex bank settlements and paper documents, with settlement cycles that can take up to 90 days and significant capital lock-up. The team believes that establishing verifiable digital reserves on blockchain can greatly improve trading efficiency and lower market entry barriers.

In operation, oil producers will pledge verified reserves to the INDEX platform. Independent auditors will then verify the quantity, authenticity, and ownership of the reserves before allowing the minting of LITRO tokens. Although the physical crude oil remains stored at the producer’s facilities, ownership will be recorded on the blockchain, enabling digital circulation.

Technologically, the project is built on the Ethereum layer-2 scaling network Arbitrum, while maintaining interoperability with other EVM-compatible blockchains. The team states that in the future, token holders will be able not only to redeem for cash but also to request physical oil redemption.

To enable this, the platform plans to introduce an intelligent logistics system that uses IoT sensors, Automatic Identification System (AIS), and AI optimization tools to automate matching, transportation arrangements, and electronic bill of lading generation, thereby connecting digital assets with the physical energy supply chain.

Currently, the project is still in early development. INDEX is in talks with financial institution Capital Union Bank and plans to complete a minimum viable product (MVP) by the end of March 2026. Industry experts believe that if this model is successfully implemented, blockchain tokenized commodities could provide a more transparent and 24/7 trading mechanism for the energy market.