Home > News > Interview > Tokenovate transforms carbon credits with blockchain
With an infinitely scalable enterprise blockchain network like BSV, you can bring anything and everything on-chain, including large-scale derivatives markets. Tokenovate is targeting this $1.2 trillion sector with its pioneering product. As John Anderson reveals, we’ve seen incredible growth over the past year as the need for transparency, efficiency and cost optimization increases.
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Mr. Anderson is Chief Product Officer at Tokenovate, a company based in Cambridge, UK that provides decentralized financial market infrastructure. The company’s products, including smart contracts and tokenization, enable programmatic lifecycle event management of trading workflows in the derivatives space.
At the London Blockchain Conference, Anderson told CoinGeek backstage that the company has just launched a minimum viable product (MVP) for derivatives market solutions.
“What we have been doing over the past year has been creating a lifecycle trading engine that is powered by the blockchain itself. We use smart contracts to manage the lifecycle of derivatives trades, and we We’re building domain models into it. We’re validating it from the[trading]venue, OTC, etc.,” he told CoinGeek Backstage reporter Claire Celdran.
Tokenovate has primarily focused on derivatives trading, but Anderson revealed that the company is looking into carbon credit tokenization and lifecycle management. In 2023, the company launched the world’s first smart legal contract for voluntary carbon credit derivative trading.
Voluntary carbon credit markets allow companies to pay to offset carbon dioxide and other greenhouse gas emissions. The sector is currently worth $1 billion and is expected to grow to $50 billion by 2030, according to McKinsey.
Since this market is still relatively new, Tokenovate aims to be one of the pioneers with its own blockchain product. The company recently signed an agreement to work with Scottish peatland regeneration and development partners for carbon credits. Tokenovate created tokens and derivatives for the company and sold them to customers. The entire lifecycle is managed by Tokenovate’s platform.
“We are essentially enriching the token with location and LEI (Legal Entity Identifier) data. This increases the value and integrity of the carbon credits themselves and increases the value of the overall market in the long term.” said Anderson.
Tokenovate’s platform is asset class agnostic. This will allow the company to switch between viable asset classes, and Anderson revealed that the company is already considering a variety of other asset classes.
“We are targeting the financial sector of capital markets and are creating a platform that can be shared as a cloud-based, multi-tenant SaaS platform. It can be used to trade, provide custody of digital assets, and direct counterparties to its platform.”
See Sustainability and Finance: Considering the Impact of Climate Change.
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