UN Registered Securities Exchange To Develop Carbon Credit Solutions On XRP Ledger

The latest update in XRP Ledger’s development saw Ripple announce its exclusive partnership with Xange, a sustainably run, United Nations’ (UN) registered, securities exchange. Xange aims to develop a Carbon Credit Solution on the carbon neutral XRP Ledger (XRPL).

Xange’s Carbon Credit Solution on the XRP Ledger will further lead to the issuance of tokenized carbon credits, following the guidelines set by the top industry working groups, including the InterWork Alliance (IWA), a Global Blockchain Business Council (GBBC) initiative, and the Taskforce on Scaling Voluntary Carbon Markets (TSVCM). Specifically, IWA’s Token Taxanomy Framework, which is used to define token standards, together with its InterWork Framework, that is used for smart contract standards, will serve as the foundation for the Xange.com Carbon Credit Solution on the XRP Ledger.

XRP Ledger’s “energy efficient” operations

As Xange’s goal revolves around climate change and climate security, therefore, it also goes hand-in-hand with the preventing illegal financial transactions by enabling more anti-carbon emission initiatives using blockchain technology. This in turn allows transparency to carbon accounting, by avoiding double counting of emission reductions or removals.

According to the press release from Xange.com, XRPL facilitates sustainable blockchain operations, as it is also one of the first major carbon neutral blockchains, which supports Xange’s anti-carbon emission agenda. Xange also compared XRPL to Proof-of-work blockchain networks, asserting XRPL’s eco-conscious functionalities.

“Xange.com chose to build on the XRP Ledger given its performance, scalability and inherently green attributes. The XRP Ledger was built with sustainability in mind and is one of the first major carbon neutral blockchains. Due to its Federated Consensus algorithm, the XRPL is significantly more energy efficient compared to proof-of-work blockchains and ensures low-cost transactions.”

This is not the first the time XRP Ledger’s sustainable attributes contributed in its favour. Earlier this year, by the end of third quarter, Ripple announced its $250 million Creator Fund, to facilitate creators explore new use cases for NFTs on the XRP Ledger. Given the environmental friendly attributes of XRPL, it was marketed as a sustainable way to mint, buy and transfer billions of NFTs.