The banking group, consisting of nine large financial institutions, has directed investments of $45 million to the development of Carbonplace, a global network of transactions on carbon credits based on DLT, founded by them.
As part of the development of financial resources, the global network is being transformed from a joint project of several banks into an independent organization. Carbonplace will start operating as a separate unit at the end of this year.
The banking group includes BBVA, BNP Paribas, CIBC, Itaú Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC, and UBS. These financial institutions now own Carbonplace in equal shares.
Fintech veteran Scott Eaton – former CEO of Nivaura and CEO of MarketAxess – has been hired as the first executive director of the global network.
Having received the name Swift in carbon markets, Carbonplace, whose office is located in London, intends to implement a plan to ensure a simple, secure, and transparent transfer of certified carbon credits.
Customers will be able to make simultaneous payments on carbon credits with the immediate transfer of ownership after payment. This solution will provide reliable reporting and provide a tracking tool throughout the transfer process.
The system should be launched by the end of 2023. Pilot auctions have already been conducted with many buyers, sellers, registries, and exchanges, including Visa and the Singapore trading platform Climate Impact X.
The financing provided by nine banks will be used to scale the activities of the global network, expand the team of employees and increase the range of services for financial institutions and carbon market participants, including registries and trading platforms.
Scott Eaton says that Carbonplace is changing the way carbon credits are bought, distributed, stored, and written off.
As we have reported earlier, Mastercard and Vesta to Safeguard Transactions.