Firms Offer Crypto Carbon Credit Scheme for Banks and Clients
Posted by Colin Lambert. Last updated: June 19, 2023
Two firms have unveiled a collaboration targeted and banks and their corporate and institutional clients to help them account for the carbon footprint of their digital assets holdings.
Zero13, which is owned by GMEX Group and terms itself a “digital climate fintech aggregation ecosystem”, is partnering with B2B digital assets infrastructure provider Zumo, to source “validated, high quality, tokenised carbon credits”. The firms add the solution will also provide customers with a flexible and transparent way to account for their carbon footprint through the procurement and custody of tokenised carbon credits, with ease of trading, clearing and settlement.
The firms say the key to the collaboration will be enabling Zumo’s customers to operate their own and/or access trading platforms and associated liquidity pools for carbon credit assets and other instruments, and to provide end-to-end efficiency through the transaction lifecycle from onboarding (KYC/AML) to settlement. The GMEX Zero13 Hub and Zero13 Chain (Pyctor) also allows banks and their customers to connect with each other and with third-party registries, exchanges, and other counterparties to issue, trade, clear and settle tokenised carbon credits.
“We are uniting the twin pillars of tokenisation and voluntary carbon markets with Zumo, says Hirander Misra, CEO of GMEX Group and Zero13. “Tokenised assets will represent some 10% of global GDP by 2030, while the global market for voluntary carbon credits is also forecast to increase exponentially in the coming decade. By leveraging the integrated tools from Zumo and distribution capabilities available through the Zero13 platform, we can together deliver a transparent and trusted way for organisations to effectively trade, clear and settle their carbon credit purchases in a manner publicly verifiable by stakeholders.”
Nick Jones, CEO of Zumo adds, “This collaboration supports our ambition to be the one-stop shop for tokenised ESG assets and follows the recent launch of Oxygen, our B2B solution that quantifies electricity-based Scope 3 emissions associated with digital asset holdings with blockchain-verified Renewable Energy Certificates.
“Blockchain is emerging as a ‘digital enabler’ in tackling climate change and supporting the energy transition to a more sustainable infrastructure. Tokenising carbon credits and being able to accurately measure carbon footprint is a great example of the regenerative finance (ReFi) movement,” he adds.