Ripple, a prominent blockchain technology company, has made a significant investment of $100 million into the carbon markets for carbon credit removal and support projects. This move is part of Ripple’s commitment to going carbon neutral by 2030, and interestingly, it can be achieved before the targeted period.
Tokenized Real World Assets (RWA) are predicted to have an estimated value of $16 trillion by 2030, according to the Boston Consulting Group. RWA refers to the process of placing tangible assets such as bonds, equities, metals, and carbon credits on blockchain ledgers as digital assets.
Carbon credits have emerged as one of the fastest-rising tokenization use cases that support the reduction of carbon emissions and contribute to a more sustainable future. Tokenizing carbon credits increases liquidity, transparency, and opens up new revenue streams. To support these use cases, Ripple has committed $100 million to the carbon markets.
According to the announcement, the fund will be used to accelerate carbon removal activities and modernize carbon markets through investment. Ripple also plans to build a portfolio of additive, long-term, nature, and science-based carbon credits as part of its efforts to achieve net zero by 2030.
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Some of the funds will go into developing new functionality and tools that support carbon credit tokenization as an important Non-Fungible Token (NFT) on the XRP ledger. The fund will also support partnerships with renowned climate and conservation organizations to develop new methodologies for carbon removal.
Ripple’s CEO, Brad Garlinghouse, expressed his thoughts on the investment, stating that their commitment is a direct response to the global call to action for companies to address climate change. He believes that blockchain and crypto have the potential to catalyze carbon markets, bringing more liquidity and traceability to a fragmented and complex market.
Ripple has been actively working towards its goal of going carbon neutral by 2030. In collaboration with Energy Web Foundation and the XRP Ledger Foundation, Ripple has decarbonized the XRP Ledger (XRPL). The company has also partnered with carbon removal companies and carbon market makers, including CarbonCure Technologies, Xange.com, and Invert, as well as organizations like Energy Web Foundation, Rocky Mountain Institute, and the Alliance for Innovative Regulation.
Steven Witte, COO & Co-Founder at Xange.com, emphasized the increasing demand for carbon credits as efforts to decarbonize the global economy intensify. He highlighted Xange.com’s use of the XRP Ledger for carbon credit verification, tokenization, and exchange functionality, recognizing its performance, scalability, and environmentally-friendly attributes.
As of now, XRP is the fourth-highest-ranked cryptocurrency in terms of market cap, with a current trading price of $0.69967. However, it has experienced an 11% decline in the last seven days.
In conclusion, Ripple’s investment of $100 million in the carbon markets reflects their commitment to addressing climate change and supporting carbon credit tokenization. By leveraging blockchain and crypto technology, Ripple aims to unlock the full potential of carbon markets, bringing more liquidity and transparency to this important sector. With their efforts to go carbon neutral by 2030, Ripple is positioning itself as a leader in sustainable finance and environmental responsibility.
