AirCarbon Exchange (ACX) has received approval from Abu Dhabi Global Market (ADGM) to establish the world’s first fully regulated carbon trading exchange and clearing house.
ADGM is on track to become the first jurisdiction worldwide to regulate carbon credits and offsets as emission instruments. It will also issue licenses for exchanges to operate both spot and derivative markets.
Anticipated to launch in 2022, ACX will function as a Recognised Investment Exchange (RIE), allowing corporations to trade and finance carbon credits similarly to traditional financial assets.
Furthermore, ACX plans to establish a regulated Recognised Clearing House (RCH) for the custodianship, clearing, and settlement of commodities and commodity derivatives.
Initially, ACX will leverage its distributed ledger technology within a conventional commodity trading framework to develop tokenized carbon credits for spot trading. Eventually, the platform aims to introduce carbon credit futures as commodity derivatives and expand to include green energy contracts. All digital tokens will be safeguarded by the RCH and settled using blockchain smart contracts.
Ahmed Jasim Al Zaabi, chairman of ADGM, emphasizes that the RCH is expected to play a crucial role in various markets and financial instruments, including virtual asset markets, thereby enhancing the market infrastructure within the digital trading ecosystem.