IBM launched its first token, a carbon credit cryptocurrency on Stellar Blockchain in partnership with environmental fintech startup Veridium Labs, Tuesday.
The “verde” token will offer large enterprises the ability to offset environmental damage from their operations by supporting the reforestation of a 250-square mile patch of rainforests in Borneo, Indonesia.
In contrast to existing third party tokens, Verde can be traded and redeemed on the “public” Stellar network, making the carbon credit supply chain transparent and frictionless, and enabling the program to have a global reach, the companies say.
Bridget van Kralingen, senior vice president of IBM’s industry platforms and Blockchain division, says:
“By using a public, permissioned blockchain network, we can help Veridium create a new sustainable marketplace that is good for business and good for the world.”
The tokens will be backed by Triple Gold REDD+ credits from Veridium’s sister company InfiniteEarth, which helps large enterprises offset their environmental impact.
Todd Lemons, CEO and co-founder of Veridium, says:
“Our digital environmental assets are designed to help companies and institutional investors purchase and use carbon credits to mitigate their environmental impacts today, and even hedge their potential carbon liabilities risks in the future.”
While Veridium did not reveal potential customers, PwC, SAP and Microsoft - companies that are developing ongoing Blockchain projects - may be suitable adopters, according to Forbes.
The news comes after IBM announced Monday that merchants and consumers in the South Pacific retail foreign exchange corridors would be able to send money to another country in near real-time, accelerating a payments process that typically takes days. The network is said to process up to 60 percent of all cross-border payments in the region.
Stellar is the world’s eighth largest cryptocurrency by market cap with a total value of roughly $6.7 bln.