Singapore-Based Cyberdyne Exchange to Debut China Carbon Credit-Backed Tokens
Digital green exchange Cyberdyne Tech Exchange will next month debut Chinese carbon credit-backed digital tokens, its co-founder and executive chairman told Caixin.
The Singapore-based exchange’s carbon neutrality tokens (CNTs) are a type of non-fungible token stored on a blockchain, with each representing 1 ton of carbon credits. These credits are tradable certificates that allow holders to emit 1 ton of carbon dioxide or other greenhouse gases.
Such blockchain-backed tokens, which contain information — including data on emission volume, carbon offsetting and carbon capture — can be traded on Cyberdyne’s platform by global investors.
“This can bridge the gap between international capital and the voluntary emission reduction market in China and ultimately attract international capital to support the massive green infrastructure build-outs in China,” Cyberdyne Executive Chairman Bai Bo said in an interview on Friday. Bai is also the founder of the Asia Green Fund, a green impact private equity fund that is also the largest institutional shareholder of Cyberdyne.
Cyberdyne has signed memoranda of understanding with three Chinese entities — CECEP Green Carbon (Beijing) Investment and Development, a subsidiary of state-owned China Energy Conservation and Environmental Protection Group, China Jinmao Holdings’ subsidiary Jinmao Capital, and China Taiping Insurance Singapore — to issue CNTs backed by carbon credits, green infrastructure and real estate projects and insurance products, the exchange said in a press release.
Bai expects total CNT trading volume will reach at least $100 million within a year, with initial trading dominated by Chinese-backed tokens due to the size of the country’s carbon credit market.
China’s voluntary carbon market is growing steadily. Its national mandatory carbon market, launched last week, is the world’s largest, as total annual carbon emissions of just the first batch of companies involved amount to more than 4 billion tons, according to official estimates.
“There will be a period of market acceptance before we see more robust growth. But eventually we hope companies will realize that this is actually a really interesting way to attract capital,” Bai said.
The exchange focuses on the listing and trading of asset-backed tokens, which allow users to hold ownership rights over an asset via the digital token, such as real estate and art and collectibles.
Cyberdyne also claims to be the first digital exchange to mandate carbon emission disclosures for both issuers and investors.
“The carbon disclosure requirement will allow all institutions that are truly environmentally conscious to have a more measureable way to support and keep track of green projects and ESG impact,” Bai said.
The exchange, which received its capital markets service license from the Monetary Authority of Singapore in May and was approved last week as a recognized market operator, is only open to institutional and accredited investors.
Contact reporter Kelsey Cheng (email@example.com) and editor Joshua Dummer (firstname.lastname@example.org)
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