The first tokenized carbon credit transactions were resolved utilizing the Chia blockchain by Carbon Opportunities firm, a private equity firm for the advancement of carbon credit verification.
The fund was created on Chia by World Bank affiliate International Finance Corporation (IFC), and investment company Sumitomo Corporation of Americas (SCOA) purchased a batch of tokenized carbon offsets from it.
Through the purchase of credits that support initiatives like tree planting or renewable energy, companies can use carbon offsets as a way to make up for their emissions.
The Carbon Opportunities Fund’s mission is to build a blockchain-based digital carbon market infrastructure with the intention of increasing offset transparency. As of the time of writing, Chia blockchain tokens (XCH) were up slightly at $34.29.
Mark Lyra, senior director at SCOA, stated that Chia might make it simpler for participants to exchange credits across platforms and borders by integrating several carbon markets. This may boost the carbon market’s value and liquidity, as well as lead to the emergence of new carbon asset classes.