Oil-backed stablecoins are coming: How will the $2.4 trillion market integrate with Web3?

[Crypto World] The traditional energy market is moving towards digital assets. A Middle Eastern energy trading platform has announced the launch of OIL1—the world’s first oil-backed stablecoin, directly targeting the $2.4 trillion global oil trading market.

From a technical architecture perspective, OIL1 is anchored to both the US dollar and Gulf crude oil prices, backed by actual oil reserves and a diversified currency basket including USDC. This design is much more complex than simple fiat-backed stablecoins—it not only needs to maintain the dollar peg but also manages the volatility of commodities. The project has chosen the Arc blockchain launched by Circle as its infrastructure, with security provided by Microsoft and ITC Secure. This combination is considered a solid setup within the industry.

Currently, the coin is awaiting approval from Bahrain’s financial regulators. Once approved, it will mark the first large-scale, regulated commodity-backed stablecoin entering the market. This could be a turning point for institutional investors looking to shift traditional commodity assets onto the blockchain.