PowerDime, an energy finance company, revealed the development of a tokenized renewable energy trading platform built on the Chintai layer-1 blockchain network. The platform is geared toward institutional investors seeking yield and renewable energy projects looking for financing options.
The platform will feature tokenized virtual power purchase agreements — fixed-price financial contracts for electricity — and provide investors with periodic cash flows. Josh Gordon, managing director at Chintai, told Cointelegraph:
“By harnessing the power of blockchain, we’re turning renewable energy into more than a commitment — it’s now an investment opportunity. By tokenizing traditionally illiquid contracts, we’re giving institutional investors the tools to drive a sustainable future while earning real financial returns.”
Gordon also said the platform currently covers wind and solar energy, with plans to expand the renewable energy offerings in the future. The platform is available in the United States, the United Kingdom, and select parts of the Asia-Pacific region, with plans to expand to other jurisdictions over time.
Global power purchase agreement market. Source: Chintai
Related: Tether introduces ‘Hadron’ real-world asset tokenization platform
Carbon credit markets and regenerative finance
The recent development from PowerDime is a form of regenerative finance — an investment sector focused on funding projects that promote social, environmental, and other public benefits.
Regenerative finance is made possible by blockchain technology, decentralized autonomous organizations, and the tokenization of real-world assets that allow investors access to global markets for reforestation projects, renewable energies, the reduction of carbon dioxide emissions, and more.
On Dec. 5, 2023, researchers in the United Arab Emirates (UAE) revealed a carbon trading platform at the United Nations Climate Change Conference (COP28).
The blockchain network tracked carbon emissions from any registered public or private entity and allowed users to trade and monitor tokens that represented reduced carbon emissions throughout the supply chain.
In May 2024, KlimaDAO Japan announced the launch of a carbon credit marketplace. The decentralized autonomous organization is focused on combatting climate change and may expand its carbon credit market to other jurisdictions.
More recently, in September 2024, financial services firm Northern Trust launched an institutional carbon credit ecosystem. The suite of tools featured in the ecosystem managed carbon credit token issuance, transfers, and maintenance throughout the life-cycle of the digital asset.
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