Blockchain tokenization prevents 394M tons of CO₂ in $32B ESG effort

Wealth tokenization platform Arx Veritas and tokenization infrastructure firm Blubird are using blockchain technology to prevent nearly 400 million tons of CO₂ emissions, marking a record for the digital asset tokenization industry.

The two firms have tokenized $32 billion worth of Emission Reduction Assets (ERAs) on Blubird’s Redbelly Network, aiming to set a “new standard” for the financing and tracking sustainability efforts.

The tokenized assets include capped oil wells and coal mines, representing over 394 million tons of prevented CO₂ emissions, marking the largest tokenization effort aligned with the Environmental, Social, and Governance (ESG) framework

The 394 million tons of prevented CO₂ emissions are attributed to two sources: the extraction, processing, shipping and burning of coal that would have been used, along with the pollutants prevented by capping abandoned oil wells.

The prevented emissions are the equivalent of nearly 395 million round-trip flights from New York to London, or 986 billion miles driven by an average passenger car, or approximately 105 times the yearly CO₂ emissions of Iceland.

Bluebird is seeing “strong institutional demand for the tokenization of ESG-aligned assets, with more than half a billion dollars’ worth of transactions under negotiation and a major institutional purchase nearing completion,” the firm wrote in a Thursday announcement shared with Cointelegraph.

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Real-world asset (RWA) tokenization refers to financial and other tangible assets minted on the immutable blockchain ledger, introducing benefits such as shared ownership, increased investor accessibility and 24/7 liquidity.

ERAs are real-world projects, such as decommissioning coal mines or capping oil wells that measurably prevent the release of CO₂ and greenhouse gases.

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Trillions of dollars in assets will move onchain amid institutional shift: Bluebird CEO

The growing institutional demand for tokenized assets may bring trillions of dollars to the blockchain in the coming years, said Corey Billington, the co-founder and CEO of Blubird, adding:

“In the coming years, we’re going to see trillions of dollars in assets move on-chain as institutions chase new liquidity, efficiency and global access

“Blubird already has more than $18 billion in active deals lined up, and we’re just getting started,” said Billington, adding that the shift toward tokenization is “inevitable.”

Bluebird aims to tokenize an additional $18 billion worth of assets by 2026, to “reinforce” its position in the RWA industry.

“We’re looking at roughly 230 million tons of CO₂ prevented emissions equivalent to that additional $18 billion pipeline,” said the CEO, adding that this also spans asset classes such as commodities, financial instruments and infrastructure assets.

Combined with its existing $32 billion in tokenized ERAs, the estimated total environmental impact will equal 600 million tons of prevented CO₂ emissions, according to Blubird’s estimates.

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