Tokenized assets have emerged as blockchain-based trust layers for institutional investors targeting sustainable market opportunities, indicating a potential inflow of capital into the blockchain rail.
Real-World Asset (RWA) tokenization refers to financial and concrete assets created in permanent blockchain ledgers, offering benefits such as fractional ownership, wide range of investor access and 24/7 liquidity.
According to Corey Billington, co-founder and CEO of Tokenization Infrastructure Firm Blubird, Tokenized RWA offers a tamper-proof trust system that is not present in traditional financial and climate funds.
“The old systems are very slow and very broken, and unfortunately most markets are looking at it at the moment,” Billington said.
“a [tokenized NFT] It’s their receipt, not a doctor. Cannot be counterfeited. I can’t do anything about that. ”
This “creates completely other layers of trust that do not exist at this time,” the CEO said, adding that this could attract more institutional capital.
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$32 billion emission reduction tokenization milestone
Comments came just after Blubird and Wealth Tokenization Platform Arx Veritas tokenized $32 billion worth of emissions reduced assets (ERA) to prevent nearly 400 million tonnes of emissions, Cointelegraph reported last Thursday.
$32 billion marks the largest tokenization events along the environmental, social and governance (ESG) framework.
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Tokenization to bring trillions of institutional climate investments
Issuance in the tokenized era could bring trillions of the facility’s capital to the blockchain.
“It really creates many new access points for climate finance,” Billington said, which is now limited by the inefficiency of existing systems.
One major bottleneck is the slow verification process of carbon assets. This can take up to 18 months through the non-commercial Standard-Setter Verra, the developer of the widely used Verified Carbon Standard (VCS).
Still, tokenized RWAs allow billions of dollars to flow into initiatives lined up in ESG.
By 2026, Blubird had more than $18 billion in tokenization transactions, and another 230 million tonnes of potential emissions could be avoided, according to Billington.
“We are considering that about 230 million tonnes of Co2 prevents emissions equivalent to that additional $18 billion pipeline,” Billington said.
If a pipeline like Blubird is realized, tokenization could become the backbone of institutions’ ESG investment strategies by 2030.
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