Episode Summary
Executive Summary: Eric Townsend interviews Abex CEO Josh Crumb and CCO Joe Raya about building a Singapore-based commodities exchange focused on LNG, carbon markets, and future blockchain-enabled market infrastructure. The discussion frames LNG as a key transition fuel and outlines Abex’s staged plan: launch traditional exchange/clearing first, then add decentralized identity and distributed-ledger tools.
Main Topics: Singapore as the venue for a new commodity exchange (Priority: 5/5): The guests argue Singapore is the right domicile because Asia’s trading activity is shifting there, Hong Kong is losing standing, and Singapore is already a major energy hub. LNG as a strategic energy-transition commodity (Priority: 5/5): They explain why LNG is central to coal-to-gas switching, grid flexibility, and global decarbonization, making it a logical focus for a new benchmark contract. Creating a benchmark futures contract for seaborne LNG (Priority: 5/5): The exchange’s core near-term mission is to establish a physically settled LNG futures market that could serve as a global pricing benchmark, similar to Brent for crude. Carbon markets tied to LNG trading (Priority: 4/5): The conversation connects LNG trading to voluntary carbon markets and suggests growing commercial interest in carbon pricing and carbon-neutrality solutions. Long-term transition to blockchain and DeFi infrastructure (Priority: 4/5): Crumb describes a multi-year roadmap to re-architect exchange operations using decentralized computing, bearer assets, and distributed-ledger systems. Self-sovereign identity as a new finance infrastructure layer (Priority: 4/5): Abex plans Web3-based identity and productivity tools that could function like a notarized digital identity layer for finance, potentially replacing legacy document-signing workflows. Capital structure, public listing, and the iron ore asset (Priority: 3/5): The company’s public shell and Canadian iron ore asset are described as financing/strategic vehicles rather than the main story, with a future NASDAQ or larger listing contemplated after launch.
Key Arguments: Singapore is becoming the primary Asian center for energy and commodity origination, making it a logical home for a new exchange. LNG is not just a fossil fuel but a bridge fuel that supports coal-to-gas switching, grid balancing, and lower emissions. There is a market gap for a direct, physically settled benchmark for seaborne LNG because current pricing references are inefficient proxies such as Brent, Henry Hub, and JCC. Physical futures markets provide buyer/seller-of-last-resort functionality and stronger price discovery than financially settled contracts. Carbon pricing and LNG are commercially linked, and the market increasingly wants tools to price emissions alongside physical energy. Blockchain and decentralized identity can improve trust, settlement, custody, and document execution in global commodity markets, but adoption must be incremental and infrastructure-led. Abex’s team has exchange-building credibility from NYMEX, Goldman Sachs, and related market-structure work, which differentiates it from pure technology startups. The company is intentionally building a bridge between traditional market infrastructure and future Web3/DeFi systems rather than trying to leap directly to a fully decentralized model.
Data Points: Recording date: March 11, 2021 - Special edition Macro Voices interview date Timeline for exchange launch: Summer 2021 - Joe Raya says the exchange is expected to launch after regulatory approval and clearinghouse licensing Exchange approval in Singapore: Principal approval obtained last fall - Management says this approval enabled public listing and progress toward launch Commercial fundraising: $20 million - Josh Crumb says the company raised roughly this amount through relationships before public listing NASDAQ partnership completion: About 90th percentile complete - Crumb says traditional infrastructure and technology integration are largely built Commercial engagement work: About 90th percentile complete - Crumb says contract development and market engagement are well advanced Clearinghouse license: Still pending - Described as the last major regulatory milestone before launch Carbon neutrality goal mentioned: 2060 - China’s formal decarbonization/carbon neutrality commitment is cited as a key market catalyst Commodity market horizon for technology impact: 10 to 15 years - Crumb says revolutionary technology is often overestimated short term and underestimated longer term Private company valuation reference: $200 million - Crumb cites Canada as a market suited to raising about $20 million at around this valuation Resource financing timeframe: 7 to 20 years - Crumb references long-cycle capital needs for resource and infrastructure investing
Pivotal Quotes: "Natural gas is not just a transition fuel, it is a fuel of the future because it is cleaner and it obviously has less carbon footprint than other fuels." — Josh Crumb: Explaining why LNG and gas matter in the energy transition "We wanted to have that technology in the front office, so to speak. We wanted that technology to be a big differentiator in what we do." — Josh Crumb: Describing Abex’s plan to integrate blockchain and decentralized infrastructure into exchange operations "The real importance of what we're doing that's a little bit different is that we are engaging with the commercial players in the marketplace." — Joe Raya: Differentiating Abex from incumbent exchanges focused mainly on financial settlement
Implications: If Abex executes, it could create a new LNG benchmark, expand carbon-market infrastructure, and pioneer regulated Web3 identity/settlement tools for finance. That would matter for energy traders, exchanges, and the broader DeFi transition.
About Macro Voices
Weekly market commentary by Hedge Fund Manager Erik Townsend and interviews with the brightest minds in the world of finance and macroeconomics. Made possible by funding from Fourth Turning Capital Management, LLC