By
Mayowa Adebajo
April 26th, 2024
IBM plans to launch its own cryptocurrency on the Stellar blockchain. In collaboration with Veridium, the companies are going to tokenize carbon credits.
U.S.-based multinational company IBM and Hong Kong’s Veridium Labs have decided to join their forces and expertise with a view to utilize blockchain, the distributed ledger technology for enhancing the efficiency in the carbon-credit market and facilitating the process of offsetting carbon credits.
Veridium Labs is an environmental financial technology company that is actively working on solving a difficult problem concerning the ways to trade carbon offset credits in an open market. And now it hopes to achieve this aim with tokens and the blockchain.
Via partnership with IBM, Veridium Labs will have an opportunity to sell carbon offset tokens on the Stellar blockchain. Each of this three companies will be entrusted with its special tasks.
Veridium will work on building the structure and defining the value formula. Stellar will provide the digital ledger for the transactions while IBM will deal with technical aspects of trading activities and tokens management.
Veridium to Use IBM Blockchain Technology to Create Social and Environmental Impact Tokens. IBM’s engagement with Veridium will mark the first public IBM involvement in a token issuance on public network.#Consensus2018 #IBM #BlockchainWeekNYC https://t.co/LMjittKRcI
— Veridium Labs (@VeridiumLabs) May 15, 2018
All three companies will work together to develop the token called Verde. IBM has never issued any tokens using a public blockchain before. So, it will be its first experience.
The idea of this partnership is to tokenize carbon credits which will enable pollution-heavy companies to offset the harm that they cause to the environment while carrying out their operations. The funds that will be received from selling the Verde token will be allocated for reforesting a 250-square mile patch of rainforest that is situated on the island of Borneo in Indonesia.
Veridium CEO Todd Lemons commented their new partnership the following way: “For years, we’ve been trying to mitigate environmental impacts at every point in the value chain, however previous solutions still presented significant complexities and costs. 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.”
IBM team believes that usage of the public blockchain network is a good opportunity for them to provide their assistance to Veridium in building an absolutely new sustainable marketplace. Moreover, this platform is said to bring benefits not only to businesses but also to the society as the whole.
Though the partners are still working out all the details of their collaboration and are trying to sort out all the issues with the various regulatory bodies, it is expected that their tokens will be available for sale this year already.
As it is known, IBM and Stellar have been already collaborating to create a global payment network powered by blockchain. Given their successful cooperation that includes creation of a network of 12 currency corridors with the help of the Stellar blockchain, there is little surprise that this partnership is to be continued.
The Stellar Network has its own currency called XLM that is the world’s eighth largest cryptocurrency by market cap as it is informed by CoinMarketCap. XLM is currently traded at $0.32.