Environmental technology firm Neutral and BaFin-licensed trading and brokerage firm DLT Finance have joined forces to introduce Europe’s first regulated trading platform for tokenized environmental assets, including carbon and renewable energy credits. The pioneering initiative combines Neutral’s cutting-edge market infrastructure for environmental assets with DLT Finance’s regulatory expertise to create a platform tailored for the intricacies of environmental assets markets.
The Neutral trading platform, launched in Germany, facilitates seamless execution of buy and sell orders using standardized trading instruments. Users gain the ability to select specific assets for redemption or deposit, take credits back to their registry account, or retire them directly on the platform. This integrated approach streamlines environmental asset trading, offering efficiency and ease of interaction for market participants.
The European Union (EU) emerges as a front-runner in environmental markets, hosting the world’s largest compliance carbon trading scheme valued at 750 billion euros in 2022. The region’s commitment to leveraging environmental assets to combat climate change is evident. The EU’s adoption of the Markets in Crypto Legislation (MiCA) in 2023 further cements its regulatory stance on tokenized trade and smart contracts.
Farouq Ghandour, Co-founder and CEO of Neutral, highlights the growing interest from institutional clients and market participants to tokenize traditional assets. Ghandour emphasizes that the partnership aims to bridge the gap between technological progress and regulatory frameworks, ushering in legitimacy, price discovery, and liquidity to the on-chain environmental asset ecosystem.
Julien Hawle, Head of Regulatory Business Development at DLT Finance, envisions transforming the way tokenized environmental assets, such as carbon credits, are traded and managed. By leveraging blockchain technology, Neutral’s environmental asset expertise, and DLT Finance’s robust regulatory infrastructure, the alliance strives to make environmental assets widely accessible, transparent, and impactful.
Neutral plans to expand its supported carbon and renewable energy assets by collaborating with partners specializing in tokenizing and curating trading instruments. The platform invites environmental asset traders, offsetting entities, and marketplaces to leverage its services and contribute to reshaping the future of environmental asset trading.
Neutral is a platform for environmental assets, featuring specialized market infrastructure to enhance efficiency, transparency, and trust. The Neutral platform empowers users to buy, sell, and interact with tokenized carbon credits, renewable energy credits, and forward contracts.
DLT Finance, operating as a BaFin-licensed investment firm (DLT Securities GmbH) and a crypto-asset custodian (DLT Custody GmbH), provides infrastructure for businesses and institutions to integrate compliant digital asset brokerage and custody into their offerings.
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