A group of nine banks has invested $45 million in Carbonplace, a global DLT-based carbon credit transaction network they established, which is becoming an independent entity ahead of its planned launch later this year.
BBVA, BNP Paribas, CIBC, Itaú Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC, and UBS now hold equal equity ownership in the venture. Additionally, fintech veteran Scott Eaton, former CEO of Nivaura and COO of MarketAxess, has been appointed as Carbonplace’s inaugural chief executive.
Referred to as the “Swift of the carbon markets,” London-based Carbonplace aims to enable the simple, transparent, and secure transfer of certified carbon credits. The platform will facilitate the simultaneous settlement of carbon credits, ensuring immediate transfer of ownership upon payment and providing robust reporting and traceability throughout the transfer process.
The system is set to launch soon, having already conducted pilot trades with various buyers, sellers, registries, and exchanges, including Visa and Singapore-based marketplace Climate Impact X.
The investment will be utilized to scale the startup’s platform, expand its team, and enhance services for additional banks and carbon market participants, including registries and marketplaces. Eaton commented, “With Carbonplace, we are transforming the way that carbon credits are bought, distributed, held, and retired. I am excited to take this company to the next level of its evolution and to help unlock its massive potential to drive significant economic and social value by opening the carbon markets up to the world.”