SILS Coverage on Launch of Private Blockchain; Tokenization of Assets

Research Alerts

(NEW YORK)-Ludlow Research initiates coverage on Silver Scott Mines (OTC: SILS) on launch of private blockchain, and entry in the tokenization of assets sector.

Private blockchains built on Hyperledger Fabric offer enhanced scalability, privacy, and governance compared to public blockchains, enabling enterprises to process high volumes of transactions securely while meeting regulatory compliance through features like permissioned access and consensus algorithms.

Public vs Private

In simple terms, SILS blockchain will have a token to execute transactions on the chain, but unlike public blockchains, like Bitcoin, these coins are held only within SILS ecosystem, or trading partners, who have been vetted through KYC to trade with the network.

These networks prioritize efficiency and interoperability with existing systems, making them ideal for B2B applications like supply chain management and financial transactions without the performance limitations or risks of public crypto platforms.

Top private blockchain applications include supply chain tracking (Walmart’s Food Trust), healthcare data management (MediBloc), real estate transactions, and fractional ownership of assets and businesses.

Strategic Considerations

The company operates at the intersection of two macro trends:

  1. Institutional demand for compliant blockchain infrastructure over speculative crypto assets
  2. Global shift toward digitizing real-world assets (RWAs)

Recent valuations of other ‘private blockchain’ projects include ConsenSys reaching a $7 billion valuation, after a $450 million funding round, and Fireblocks, achieving an $8 billion valuation following a $550 million investment.

Other startups like CoinSwitch Kuber and MoonPay also secured multi-billion-dollar valuations, reflecting investor confidence in permissioned blockchain infrastructure tailored for institutional use cases.

Is this to say SILS could justify these types of valuations in the short-term? No, certainly not, but permissioned networks are increasingly attractive to large institutional investment firms, supply chain managers, and healthcare organizations seeking enhanced security, regulatory compliance, and seamless integration with existing systems.

With under 3 million shares in its DTC float, SILS combines scarcity with exposure to a market growing at an 18.8% CAGR.

  1. Unlike public crypto-plays, SILS bridges traditional finance and blockchain innovation, mirroring successes like BlackRock’s BUIDL treasury fund. The company’s focus on regulatory alignment and fractional ownership aligns with a sector poised for 50x growth, making its small public float a potential for major upside returns.

    For investors seeking blockchain exposure beyond volatile cryptocurrencies, SILS offers a rare combination of compliance, scalability, and tangible asset-backed value in a hypergrowth vertical.

    Invest in technology, not hype.

Citations:

  1. (n.d.). Blockchain in the Food Supply Chain: A Technical Deep Dive. Walmart Global Tech. Retrieved February 2, 2025, from https://www.walmart.com/content/walmart-global-tech/en_us/blog/post/blockchain-in-the-food-supply-chain.html 
  2. Boosty Labs. (2024, September 15). Review of JPMorgan’s Onyx Blockchain Platform. Retrieved February 2, 2025, from https://boostylabs.com/blog/onyx 
  3. World Economic Forum. (2024, December). Tokenization: The Future of Blockchain Assets in Finance. Retrieved February 2, 2025, from https://www.weforum.org/stories/2024/12/tokenization-blockchain-assets-finance/


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