- Ripple invests $100 million into the carbon markets for carbon credit removal and support projects and strategic partnerships.
- This is part of its plan of going carbon neutral by 2030, interestingly, this can be achieved before the targeted period.
Tokenized Real World Assets (RWA) are predicted to have an estimated value of $16T by 2030 according to Boston Consulting Group. Per definition, it is the process of placing tangible assets such as bonds, equities, metals, carbon credits, etc on blockchain ledgers as digital assets.
According to reports, carbon credits exist as one of the fastest-rising tokenization use cases that support the reduction of carbon emissions to contribute to a more sustainable future. It also plays an important role by increasing liquidity, transparency, and opening new revenue streams. To support these use cases, Ripple has committed $100 million to the carbon markets.
How the Fund Would be Used
According to the announcement, the fund is expected to be used in the acceleration of carbon removal activities while ensuring that carbon markets are modernized through investment. In addition, Ripple would be committed to building a “portfolio of additive, long-term, nature, and science-based carbon credits”. These are part of its plans to achieve net zero by 2030.
Some of the funds would also go into new functionality and developer tools that support carbon credit tokenization as an important Non-Fungible Token (NFT) on the XRP ledger. The fund would also support the plans to partner with renowned climate and conservation organizations in a bid to come up with new methodologies to remove carbon.
Brad Garlinghouse, CEO of Ripple commented on this:
Our $100 million commitment is a direct response to the global call to action for companies to help address climate change by deploying resources, including innovative technology, strategic capital, and talent. While reducing emissions and transitioning to a low-carbon future are paramount, carbon markets are also important tools for meeting climate goals. Blockchain and crypto can play a catalytic role in allowing carbon markets to reach their full potential, bringing more liquidity and traceability to a fragmented, complex market.
Ripple Committed to Going Carbon Neutral
It can be recalled that in 2020, Ripple disclosed its plan of going carbon neutral by 2030. In collaboration with Energy Web Foundation and the XRP Ledger Foundation, Ripple decarbonized the XRPL. It also partners with carbon removal companies and carbon market makers. Ripple is so far working hand in hand with CarbonCure Technologies, Xange.com, and Invert. Some of these carbon players include Energy Web Foundation, Rocky Mountain Institute, and the Alliance for Innovative Regulation.
Steven Witte, COO & Co-Founder at Xange.com also commented on this:
As efforts to decarbonize the global economy increase, demand for carbon credits will only increase. The industry needs to evolve its existing infrastructure and verification methodologies to address our climate needs. Xange.com offers market infrastructure solutions that facilitate the development of ecological projects, the measurement of ecological benefits, and the registration of corresponding carbon credits. To achieve this, Xange.com chose the XRP Ledger, given its performance, scalability, and inherently green attributes, to build its carbon credit verification, tokenization, and exchange functionality.
XRP is currently the fourth-highest-ranked coin in terms of market cap and is trading at $0.69967. As of press time, the asset had a decline of 11 percent in the last seven days.
