Efficient capital markets are vital in the global quest for practical and large-scale carbon abatement projects, policies, and outcomes.
XB believes the first and fundamental step is providing instruments and investment vehicles that can be traced, verified and accountable for carbon abatement. Distributed Ledger Technology can play a major role in proving the provenance of carbon instruments, via tokenised instruments.
XB's initial marketplace will be established in Bermuda, where the Bermuda Government, private sector and regulator are committed to establishing the nation as a leader in the efficient and effective allocation of financial capital, mitigating climate risk and continued innovation and solutions to address climate change. The Bermuda Monetary Authority (BMA) has introduced market-leading regulations for digital asset businesses, including a sandbox that XBourse intends to enter to fine-tune its products.
Nature-Based Tokens (NBTs)
XBourse intends to further enhance the Carbon Credit Marketplace by developing tokenised instruments (Nature Based Tokens - “NBTs”) that will encourage direct investments in the underlying nature-based carbon abatement projects that create Nature-Based Credits (NBCs), including enabling the NBT investors to receive their returns from the project NBCs in either traditional dividends or in specie distribution of the NBCs. The NBCs will be expanded to include biodiversity rights, water rights, green hydrogen guarantees of origin and other credits derived from nature-based solutions.