Investors for the first time can invest in the asset class for the net zero world.
XTCC™, the pioneer in exchange traded carbon credits, unveils the world’s first multi-currency investment products for high-quality carbon credits. XTCC is the only product which allows for investors to access this growth opportunity and new asset class with a credible, transparent structure that offers exceptional liquidity across both digital and conventional capital markets. XTCC is available as either as a three or four year fixed term investment (with a principal protection option) and an open-ended product and can be purchased in multiple currencies including USD, GBP, AED, EUR, BTC and ETH.
McKinsey, Bain, BCG, Barclays, Morgan Stanley, the World Bank and Norwegian Sovereign Wealth Fund all predict explosive growth in the high-quality carbon markets with predictions above a 15-fold increase in the market by 2030. The XTCC offering features a complete asset class solution for both investment and offset (retirement) purposes by sourcing high-quality carbon credits from projects including solar, wind, hydropower, biogas, biomethanation and blue carbon (mangrove and peat). The assets are secured by an ISDA and held under English law.
XTCC integrates a committed network of specialist providers, including Bondstream, a Global 100 award-winning fintech platform and ZERO13, GMEX Group’s award-winning digital climate fintech ecosystem, creating authenticity, transparency and liquidity across platforms and projects.
This initial launch will take place on conventional regulated markets Bermuda Stock Exchange and Deutsche Börse and listing on SECDEX digital marketplace.
XTCC features a range of products which align to the interests of environmentally conscious investors and ultimately drives circularity benefits to develop more renewable projects. XTCC offers investors flexibility with options for principle-protected or uncapped returns, both featuring a unique mechanism for offset (retirement) which also allow investors to hedge against potential costs of compliance or invest in the expected rise in both the price and demand for carbon credits.
This latest collaboration adds to the expanding network of business and interconnection layers offered via the ZERO13 platform-as-a-service, which includes its integration to its affiliate exchange company SECDEX for trading and settling XTCC in both digital and traditional form.
XTCC provides a ground-breaking solution to investing in high-quality carbon credits by providing authenticity, transparency and liquidity across platforms and projects.
Liquidity and credibility in the market for high-quality carbon credits are increasingly recognised as a critical solution for achieving net zero targets. This will be a focal point at the forthcoming COP28 summit in Dubai. Unlike emission trading systems, XTCC sources high-quality carbon credits from renewable energy, carbon sequestration and avoidance projects that encourage further use of renewable energy. With XTCC’s launch, investors can, for the first time, benefit from a dependable, standardised and transparent vehicle to invest in this new asset class.
“XTCC isn’t merely an investment; it’s a pledge to a sustainable net zero future” said Professor Lisa Wilson, Managing Director of XTCC and a preeminent authority on digital technology, innovation, fintech and blockchain. “By linking investors, retirement mechanisms and project owners, XTCC has created the perfect financial product for circularity in the net zero ecosystem. XTCC liquidity should fuel both growth of new projects and the missing market credibility in the high-quality carbon market.”
Professor Wilson added, “Our focus on sourcing high-quality credits from renewable projects that aim for emission avoidance, respect additionality and adhere to UN and industry standards democratises the market. This is how XTCC propels renewable energy innovation and growth.”
Dr Scott Levy, Managing Director at Sustainable Capital, said: “Oil was the commodity of the industrial age; carbon credits should be the commodity of the net zero world – but so far the market has not functioned properly.”
Dr Levy continued, “What sets XTCC apart is confidence through auditability delivered to the regulated capital markets. Investors will be able to see the nature of the high-quality carbon credits with top to bottom provenance and immutability through integration with the award winning Bondstream and ZERO13 platforms. This gives investors credibility from inception to impact and clears the way for eliminating double-counting and greenwashing that have hampered carbon markets in the past.”
Hirander Misra, CEO of ZERO13, said, “We’re excited that the ZERO13 platform will support investors of XTCC to tap into a multi-currency universe of carbon credits that are transparent in their provenance and impact. By integrating XTCC’s offerings with ZERO13’s multi-blockchain -driven trading and settlement network of networks we are also establishing a robust mechanism for climate action that maximises distribution and trust, driving us all towards a net zero future.”
Professor Kevin Haines, Head of Social Policy at Sustainable Capital, said, “While many carbon credit schemes have proven to be more smoke and mirrors than substance, XTCC offers a genuine opportunity for change. Through liquidity that incentivises real growth of renewable projects XTCC can be a true catalyst for sustainable, social and environmental progress.”
Key Features of XTCC:
1. Investment Structure: XTCC employs standard institutional documentation, making high-quality voluntary carbon credits easily investable. Available in multiple currencies including USD, GBP, AED, EUR, BTC and ETH
2. Market Access: Through integration with Euroclear, Clearstream, CREST and Austraclear, XTCC can tap into the trillions of dollars of investors daily liquidity to create an efficient market for high-quality carbon credits.
3. Additionality: XTCC only includes high-quality carbon credits which recognise the importance of additionality and co-benefits.
4. Transparency and Authenticity: The collaboration of ZERO13 and BondStream provides investors with confidence of the accountability, provenance and transparency of the carbon credits.
5. Digital Integration: Leveraging the BondStream cap table management system, XTCC connects mainstream capital markets with the digital currency realm, resulting in the first-ever digital and conventional clearable securities with cross-market liquidity.
6. Investment Impact: Funds from XTCC investments provide liquidity to the high-quality carbon credit market. This liquidity closes the gap and should incentivise the development of more renewable energy projects, aligning with global net zero objectives.