In a landmark move, wealth tokenization platform Arx Veritas and infrastructure provider Blubird have successfully tokenized $32 billion in emission reduction assets (ERAs).
This initiative, executed on Blubird’s Redbelly Network, represents a significant shift from traditional carbon credits. Instead of tokenizing offsets, it focuses on tokenizing the underlying environmental projects themselves, such as capped oil wells and decommissioned coal mines.
These projects directly eliminate future emissions by rendering fossil fuel extraction economically unviable. The 394 million tons of CO₂ avoided highlights the immense scale of this action, which is equivalent to the annual emissions of 82 million US homes.
Blockchain provides transparency and traceability. This allows for the tracking of emissions reductions and for automated compliance reporting, addressing challenges with data and greenwashing.
Corey Billington, CEO, Blubird, notes that institutional demand for these tokenized assets is accelerating, with over $500 million in transactions currently in negotiation. This underscores the growing comfort of major investors with blockchain-based solutions for measurable climate action.
Blubird has plans to tokenize an additional $18 billion in assets by 2026, which is projected to prevent an extra 230 million tons of CO₂ emissions. This would bring the total to approximately 600 million tons of avoided emissions, a figure that aligns with global climate targets and showcases the scalability of the new green finance model.
As per market data, the carbon market, valued at $1.3 trillion, is turning to tokenized assets to improve liquidity and standardization, validating the sector’s growth trajectory.
