Distributed financial market infrastructure provider Tokenovate and GMEX Group’s climate fintech initiative, ZERO13, have executed the first smart legal contract for voluntary carbon credit (VCC) derivatives trades.
Based on BSV Blockchain, the contract was written in reference to waste-to-energy VCC trades originating from AJS Fuel’s bio-compressed natural gas (BNG) project, based in Gujarat.
Tokenovate’s distributed financial market infrastructure (dFMI) was integrated into ZERO13 Hub, a distributed orchestration layer allowing carbon participants, registries and exchanges to trade, clear and settle VCC spot and derivatives contracts.
The trade was made between waste solution advisory firm Maverik and Tempus USA. It was conducted on the Seychelles FCA-licensed Securities, Commodities and Derivatives Exchanges (SECDEX), which was connected to the Universal Carbon Registry where the VCCs are registered via ZERO13 Hub.
The companies state that they will continue their collaboration in this area, incorporating 2022 ISDA Verified Carbon Credit Transactions Definitions into their global standards and digital tools
Commenting on the announcement, Richard Banked, founder and CEO of Tokenovate, says: “The adoption of smart legal contracts will improve lifecycle event management and increase fidelity of derivative trading immensely. Distributed ledger technology will facilitate velocity at scale, while enhancing security and transparency. We believe the digitisation of financial market infrastructure will now accelerate, and it’s Tokenovate’s ambition to operate at the heart of this transformation. Today’s announcement and collaboration with ZERO13 is an important first step and significant milestone in bringing VCCs to market using BSV Blockchain-based smart legal contracts.”
Hirander Misra, CEO of GMEX Group and ZERO13, adds: “Our unique approach uses a globally recognised standard, trusted by institutions and corporates across the world, to help enable liquidity growth in VCC markets digitally and flexibly map it to address buyers’ criteria.”
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