Veridium Labs Leader Looks to Leverage Blockchain for a Carbon Credit Market Transformation
Former director at Kraken cryptocurrency exchange, William Evans, who left the exchange to head Veridium Labs – a fintech startup, has expressed a strong desire to use blockchain technology to transform the market for carbon credits which is a financial product Veridium Labs is hoping to improve on and popularise.
Optimistically quoted as saying “the blockchain could radically transform this market”, Evans is looking to work on the carbon credit market and make it almost as viable as the bond market, the FX market or even the stock market.
How It Works
Carbon credits, fundamentally, serve as financial support for a mission to reduce the emission of carbon to the barest minimum. The carbon credits, are regarded as legal and are even standardized and regulated by the Commodities Futures Trading Commission.
Any entity – a person, a firm, an oil company or even an airline – can get carbon credits if they financially support any cause in this regard, in a bid to balance out carbon emissions that occur in their business.
The carbon credit market, according to Evans, is “fairly illiquid” as it’s quite difficult for investors or stakeholders who already have positions in the market, to change said position(s).
”Our vision is to develop a marketplace for these projects to be invested in and for the trading and issuance of credits to occur.”
Evans predicts that requests for carbon credits will significantly increase in the near future. Veridium Labs, to that end, plans to tokenize the carbon credits.
They believe that this will make trading easier and faster when demand increases because investors and stakeholders will soon begin to pressure firms to show significant financial support to causes that help the environment.
About William Evans
A veteran in the financial services sector, Evans worked with the CME Group as an executive director of the exchange company. While he was there, he led the ventures unit at the firm which made investments in fintech firms. Evans was also a director at Kraken and stayed there for seven months before leaving for Veridium Labs.
Evans revealed that before officially jumping ship to Kraken, he had been helping them through a few things and making worthwhile contributions to the firm from his wealth of experience, expertise and skill.
The Future of Environmental Solutions
More than just making huge profits and piling those up, stakeholders and investors seem to have a growing need to ensure that their investments are as impactful as can be. Every day, they look a little past the money towards more selfless effects.
Due to this, firms, brokers and money managers are under pressure to find more and more ways to diversify investment options to meet the desires of their investors.
A 2017 report from Bank of America Merrill Lynch notes that investors are looking specifically into environmental impact. The report says:
“Investor appetite for environmental solutions has increased sharply in recent years, with $21.4 trillion in global assets incorporating socially responsible investing, and up to 93% of US millennials showing a high preference for impact investing.”
This shows that environmental impact is a lot more desired and sought out. This is one of the reasons why carbon credits are predicted to be more and more successful in the future.
Veridium Labs has partnered with IBM to help them actualise these desires especially with regards to regulation. Blockchain will tremendously help.