Wealth Tokenization and CO₂ Emissions Reduction
Wealth tokenization platform Arx Veritas, along with tokenization infrastructure firm Blubird, is harnessing blockchain technology to avert nearly 400 million tons of CO₂ emissions, establishing a benchmark for the digital asset tokenization sector.
The two companies have successfully tokenized $32 billion in Emission Reduction Assets (ERAs) on Blubird’s Redbelly Network, with the ambition of creating a “new standard” for financing and monitoring sustainability initiatives.
The tokenized assets encompass capped oil wells and coal mines, representing over 394 million tons of avoided CO₂ emissions, which stands as the largest tokenization initiative aligned with the Environmental, Social, and Governance (ESG) framework.
The avoided emissions result from two main sources: the extraction, processing, shipping, and combustion of coal that would have been used, as well as the pollutants mitigated by capping decommissioned oil wells.
These prevented emissions are comparable to nearly 395 million round-trip flights from New York to London, or 986 billion miles driven by an average passenger vehicle, or around 105 times Iceland’s annual CO₂ emissions.
Blubird has noted “strong institutional demand for the tokenization of ESG-aligned assets, with over half a billion dollars’ worth of transactions currently under negotiation and a significant institutional purchase approaching completion,” according to a Thursday announcement.
Understanding Real-World Asset Tokenization
Real-world asset (RWA) tokenization pertains to financial and other tangible assets minted on the secure blockchain ledger, presenting advantages such as shared ownership, enhanced investor accessibility, and 24/7 liquidity.
ERAs consist of real-world projects, including the decommissioning of coal mines or the capping of oil wells that effectively prevent the release of CO₂ and greenhouse gases.
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The increasing institutional interest in tokenized assets could lead to trillions of dollars flowing into the blockchain over the next few years, as noted by Corey Billington, co-founder and CEO of Blubird, who stated:
“Blubird already has more than $18 billion in active deals lined up, and we’re just getting started. The shift toward tokenization is inevitable.”
Blubird is targeting an additional $18 billion in asset tokenization by 2026 to further “reinforce” its position within the RWA sector.
“We’re looking at roughly 230 million tons of CO₂ prevented emissions, equivalent to that additional $18 billion pipeline,” the CEO explained, indicating that this also includes various asset classes such as commodities, financial instruments, and infrastructure assets.
When combined with its existing $32 billion in tokenized ERAs, the projected total environmental impact will approximate 600 million tons of avoided CO₂ emissions, as per Blubird’s estimates.
