Singapore Bank Set To Launch Tokenized Carbon Credits Before 2023

Key Insights:

• OCBC and MVGX announced their new partnership today.
• The companies will be incentivized with tokenized carbon credits to invest in climate action projects.
• The CeFi and DeFi partnership continues to expand in 2022.

In an announcement today, the OCBC (Oversea-Chinese Banking Corp.) Bank and the Metaverse Green Exchange (MVGX), earlier known as Cyberdyne Tech Exchange, joined hands to take action for the climate.

Crypto for the Climate

In a press release, the companies declared that they would be pushing out green financing solutions for companies in the hard-to-abate industries which are involved with steel, cement, and chemical production.

Since a lot of corporations are trying to find an easier way to achieve carbon neutrality for the year 2023, the partnership will open the doors to tokenized carbon credits.

These tokens will be supported by MVGX’s DLT (distributed ledger technology), which will enable said corporations to keep track of the carbon performance of the climate action projects they would invest in, in real-time.

Carbon credits have become an increasingly lucrative and effective method for companies to achieve carbon neutrality. Combining the efforts of CeFi and DeFi to produce the tokenized carbon credits will make it easier for companies to achieve this goal.

Commenting on the same, the Executive Chairman and Co-Founder of MVGX, Bo Bai, said,

“Despite the best intentions, governments and businesses around the world have come to realize the limitations of the current systems for tracking and neutralizing carbon emissions. Thankfully, there is now a greater urgency to embrace new solutions that leverage technology to promote carbon reduction and finance green initiatives.”

Crypto Space Makes an Effort As Well

Within the crypto space, the environment has been a priority, and to protect the same, more and more options have been appearing to mitigate climate change.

Recently, as reported by FXEmpire, Algorand launched the first smart contract, which would automatically allocate a portion of every transaction fee in order to offset its carbon emissions.

The chain, which prides itself on being the first carbon-negative blockchain, is setting an example of the ingenious ways through which others in the crypto space can contribute to the environment.