Tokenized trading project Neutral and DLT Finance, a German brokerage firm, have built a blockchain-backed exchange for carbon credits – financial instruments that represent forests and renewable energy products that businesses can use to offset their carbon footprint.
The tokenized real-world asset (RWA) project isn’t the first to bet that blockchain can improve the multibillion-dollar carbon credit market. However, it is the first to secure regulatory approval – specifically from Germany’s financial regulator BaFin – to operate the exchange.
“We didn’t see anyone building the market infrastructure that would allow for traditional traders to interact with these assets,” Neutral CEO Farouq Ghandour said in an interview. He said his company