KlimaDAO Japan Partners with Progmat to Launch Carbon Credit Marketplace; Global Expansion Planned
Summary:
KlimaDAO Japan is set to launch a carbon credit marketplace, KlimaDAO Japan Market, enabled by the Progmat stablecoin platform. Initially, the market will trade J-Credits carbon credits with plans for gradual global expansion via Carbonmark. The project is in its second phase with JPYC to be recognized as a digital payment method. Phase 3 will launch international trading and assist other institutions to create similar platforms. Notable supporters of KlimaDAO include billionaire Mark Cuban, with the protocol operating on the carbon neutral-pledged Polygon network.
KlimaDAO Japan is planning to introduce a new platform for carbon credit trading, dubbed KlimaDAO Japan Market. It has partnered with the Progmat stablecoin platform to explore how companies and local governments can trade carbon credits using a Progmat stablecoin. This initiative may eventually have a global reach. KlimaDAO, a blockchain-based organization dedicated to combating climate change, envisions that the KlimaDAO Japan Market will in due course trade J-Credits carbon credits, which were introduced to the Tokyo Stock Exchange in October. The aim is to gradually broaden trading to an international level via Carbonmark, a platform where KlimaDAO is currently operational, as outlined in a recent statement. The trading volumes of J-Credit are yet to gain significant momentum. The worldwide carbon credits market stands at just $2.9 billion, with a mere $288.1 million attributed to voluntary credits, as per the statement. It is forecasted that the global market could hit $172.9 billion by 2030, with Japan contributing $1.9 billion.
Progmat was established through the support of a group of banks led by Japan's largest, Mitsubishi UFJ Financial Group (MUFG) via its Mitsubishi UFJ Trust and Banking. KlimaDAO will conduct trades using the JPYC coin, tied to the yen, on the infrastructure provided by Optage, a telecommunications firm operating in the Kansai region.
Presently, the partners have initiated the second phase of their study, following the successful deployment of the ecosystem components by April. JPYC will soon be recognized as a digital payment method, and Mitsubishi UFJ is gearing up to act as the coin trustee. Completion of Phase 2 is slated for the end of the year, at which point service is expected to commence. Integration with Carbonmark will also kick off. Phase 3 will see the beginning of international trading and assistance for financial institutions and companies to establish their own marketplaces.
In September, Binance and MUFG revealed a study to leverage Progmat for issuing yen-tied and other types of stablecoin. The issuance of stablecoins in Japan became feasible following regulatory adjustments made in June.
Noteworthy backers of KlimaDAO includes billionaire Mark Cuban. This unrestricted protocol functions on the Polygon network, which is committed to becoming carbon neutral in 2022.
Published At
5/21/2024 8:43:41 PM
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