The Singapore-based OCBC Bank announces a strategic partnership with digital exchange MetaVerse Green Exchange (MVGX) to create tokenized carbon credits set to launch later this year.
According to a Forkast report, MVGX’s Carbon Neutrality Tokens (CNTs) are tokenized carbon credits that will let large corporations offset their carbon emissions and ease their journey to carbon neutrality.
Elaine Lam, Head of Global Corporate Banking at OCBC Bank, stated “With the recently released report by the United Nations’ Intergovernmental Panel on Climate Change (IPCC), there will be increased urgency in corporates’ transition to a low carbon future by cutting down greenhouse gas emissions.”
CNTs are linked to sustainable projects throughout the world that help create carbon credits, such as reforestation and renewable energy projects, employing MVGX’s unique Non-Fungible Digital Twin (NFDT) distributed ledger technology.
The collaboration is also a response to alternative carbon solutions’ inability to scale, owing to issues such as double counting and cross-border carbon trading.
CNTs will help to alleviate this by allowing for more precise measurement of emissions and offsets. To compute the credits required, an independent third party will verify predicted carbon emissions from specific projects.
“We hope to accelerate these efforts by providing financing solutions with tokenized carbon credits, and expand the reach of private sector finance in areas and sectors most crucial in mitigating climate change,” Lam added.
This also marks the OCBC’s debut into the digital asset field, following its announcement last year that it was considering setting up its own crypto exchange. MGVX is an exchange licensed and regulated by the Monetary Authority of Singapore.
Singapore, where both companies are based, has been cautious to adopt the crypto business in the past. At the start of this month, Singapore passed a law tightening regulations for crypto providers, asking virtual asset service providers in the country that solely do business overseas to be licensed.
