Ripple (XRP), a leading blockchain company, has made a groundbreaking move by investing $100 million in carbon markets. This strategic investment aims to accelerate carbon removal activities and modernise carbon markets through innovative technologies and strategic partnerships. Its ultimate goal is to achieve carbon neutrality by 2030, a target it might surpass sooner than expected.
View from a drone of a plantation of young seedlings.
The concept of tokenised Real-World Assets (RWA) is rapidly gaining traction. According to the Boston Consulting Group, RWA's estimated value is projected to reach $16 trillion by 2030. Tokenised RWA involve placing tangible assets like bonds, equities, metals, and carbon credits on blockchain ledgers as digital assets, offering greater liquidity and transparency.
Read more: How are carbon credits issued?
Carbon credits are emerging as one of the most promising use cases for tokenisation. They not only support the reduction of carbon emissions but also create new revenue streams and promote sustainability.
Ripple's $100 million investment will aid in the growth of carbon markets, advancing the adoption of nature and science–based carbon credits. Ripple's CEO, Brad Garlinghouse, emphasised the importance of companies' involvement in addressing climate change. He stated that blockchain and crypto could play a pivotal role in enhancing carbon markets, bringing liquidity and traceability to a fragmented industry.
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Through this funding, Ripple aims to develop new functionality and developer tools supporting carbon credit tokenisation as Non-Fungible Tokens (NFTs) on the XRP ledger. Additionally, it plans to collaborate with prominent climate and conservation organisations to devise innovative methodologies for carbon removal.
Ripple's commitment to going carbon neutral by 2030 was disclosed in 2020. It has already taken significant steps towards this goal by decarbonising the XRP ledger in partnership with Energy Web Foundation and the XRP Ledger Foundation. Furthermore, Ripple collaborates with leading carbon removal companies and market actors, such as CarbonCure Technologies, Xange.com, Invert, Energy Web Foundation, Rocky Mountain Institute, and the Alliance for Innovative Regulation. These partnerships demonstrate Ripple's dedication to sustainability and environmental preservation.
DGB Group stands at the forefront of innovation, combining AI, blockchain, big data, and drone technology to develop and validate our nature-based projects. The potential of the carbon market and to create a positive impact is monumental. Take this transformative journey with us and support nature in the most transparent and accessible way. Join DGB Group today and be a part of the change that shapes a greener future for our precious planet.
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