According to Forbes, IBM has decided to issue a token called “Verde” in partnership with carbon credits startup Veridium Labs Ltd. The token will be issued on the stellar blockchain.
The purpose of the token is to give companies that pollute the environment a way to offset the damage by supporting a patch of Indonesian rainforest. Carbon credits is not a new concept, but the current method of tracking pollution is incredibly time-consuming and complex. The hope of the Verde token is that it can make this process much more cost-effective and simple.
Jared Klee, IBM’s blockchain offering manager, said of Verde:
“We’re creating a fungible digital asset, a token which part of the goal is to create a market where people can buy, sell, trade and then redeem it for the underlying credits…By having a liquid market you open up a world of possibilities… Our engagement with Veridium will mark the first public IBM involvement in a token issuance on a public network”
Veridium was only founded in October 2017, but the firm has been able to grow rapidly as a result of its partnerships and connections. Veridium is a project within the portfolio of the Envision Corporation which is a Hong Kong-based incubator for sustainable technologies.
Veridium founder Todd Lemons said:
“We’ve taken not only this environmental asset, the credit, which is difficult to quantify and classify on the balance sheet,” Lemons said. “But then we’ve also fully automated the process of measuring, selecting and then offsetting just by virtue of integrating the token into the transaction.”