Carbon Opportunities Fund, a private equity fund developing carbon credit verification, has settled its first transactions of tokenized carbon credits using the Chia blockchain.
Investment company Sumitomo Corporation of Americas (SCOA) bought a batch of tokenized carbon offsets from the fund, which developed on Chia by International Finance Corporation, a subsidiary of the World Bank. (IFC).
Carbon offsets are a way for companies to offset their emissions by purchasing credits that finance tree planting or renewable energy projects.
The goal of the Carbon Opportunities Fund is to create a digital carbon market infrastructure using blockchain to add more transparency to offsets.
At the time of writing, Chia blockchain (XCH) tokens had risen marginally to $34.29.
“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.”
Read more: Chia Network files registration with the US SEC for a proposed initial public offering
