CTX to Debut Chinese Carbon Credit Backed Digital Tokens
CTX to Launch CNT Tokens Backed by Chinese Carbon Credit
The company’s proprietary offering is a type of non-fungible token on the blockchain that represents one ton of carbon credits. Owners of these tokens can use them as tradeable certificates to receive approval for emitting one ton of carbon dioxide and other greenhouse gases. If a company has spare credits, it can sell them to other businesses or pay for other clean energy-based projects to offset its own emissions.
According to the exchange, its CNT tokens will enable the transfer of carbon credits across the border. This has been impossible until now due to the long-drawn disagreements between signatories of the Paris Agreement. The disputes are specifically centered on Article 6, with many countries expressing reservations about the double-counting of internationally traded carbon offsets.
CTX Looking to expand in Europe and North America
To assure transparency, CTX leverages a digital asset called VER (voluntary emission reduction), which has the information of a carbon neutrality token embedded in it. These assets are then available for trade on the company’s exchange. As a result, both investors and issuers can track the carbon footprint of their production activities through the tokens and plan their fundraising to meet their sustainability objectives.
Founded in 2018 and backed by the $2 billion Asia Green fund, CTX is a digital green exchange recognized by the Monetary Authority of Singapore(MAS). The company provides institutional investors with complete infrastructure and custody of asset-backed digital tokens. It will soon launch Bitcoin trading for its users, with a direct exchange between fiat money and the currency. In line with its focus on green energy, each Bitcoin traded on its exchange will carry a carbon emission value.
