The Carbon Opportunities Fund, a private equity fund for the development of carbon credit verification, has completed its first transactions of tokenized carbon credits using the Chia blockchain. Investment company Sumitomo Corporation of Americas (SCOA) purchased a batch of tokenized carbon offsets from the fund, which was developed on Chia by World Bank affiliate International Finance Corporation (IFC).
Carbon offsets are a way for companies to offset their emissions by purchasing credits that fund projects in tree planting or renewable energy. The Carbon Opportunities Fund is aiming to create a digital carbon market infrastructure using blockchain to add greater transparency to the offsets.
Chia can facilitate the integration of different carbon markets, making it easier for participants to trade credits across borders and platforms, said Mark Lyra, senior director at SCOA. This can increase the liquidity and overall value of the carbon market, including the creation of new carbon asset classes.
At the time of writing, tokens of Chia blockchain (XCH) were up marginally at $34.29.