The draft genome sequence of the filamentous nitrogen-fixing cyanobacterium Tolypothrix boutellei strain VB521301_2 was assembled with 11 scaffolds. The organism is lipid rich and hydrophobic and produces polyunsaturated fatty acids which can be harnessed for industrial purpose.

Cyanobacteria are photosynthetic prokaryotes producing a variety of compounds with applications ranging from industrial products, health care, and food biotechnology to environmental remediation. They are also known to produce bioactive compounds with antimicrobial antifungal properties and are implicated in the production of biofuel and biodegradable plastics. Tolypothrix is a filamentous, hydrophobic nitrogen-fixing cyanobacterium with great commercial significance. Some members of this genus have been found to produce antifungal glycopeptides and blood-clotting agents. Fatty acid profiling of Tolypothrix sp. has shown high oleic acid content and the monounsaturated fatty acid produced by these organisms can be used as biodiesel.