Ripple, a blockchain and cryptocurrency solutions firm based in the United States, has set aside $100 million to speed up carbon removal initiatives to keep global warming below 1.5ºC. The California-based business has completed a private buyback of shares it sold amid its December 2019 Series C investment round, valuing the corporation at $15B.
According to the corporation, the new fund would aid in the modernization of carbon markets by investing in new technologies, carbon removal enterprises, and climate-focused Fintech firms. Ripples will disclose the investment in a news release on May 19th.
To reach its goal of going net-zero by 2030 or earlier, Ripple would also establish a collection of long-term, nature- and science-based carbon credits that they may utilize for that purpose, the corporation stated in the release. XRPL’s carbon credit tokenization will be supported by funding for expanded features and developer tools, according to the company.
The Fund’s Main Objectives
With its $100M investment, Ripple has stated that it is putting its money where its mouth is to protect the environment. According to some of these activities, the technology firm is establishing a collection of high-quality carbon credits to fund the most effective, sustainable carbon removal methods and initiatives.
Carbon-dissolving technology businesses and market makers that leverage blockchain, cryptocurrency, or other financial technologies to speed up distribution will benefit from the fund’s investments. XRPL designers and developers will also benefit from the funding, which will be involved in developing new features for the XRPL’s carbon markets services and carbon credits NFTs.
Ripple also plans to use the funds to maintain its collaboration with leading climate and conservation groups to create innovative carbon removal technologies. According to the business, it will complement distributed stakeholder-led regulatory frameworks, allowing suppliers to benefit from increased fairness, income, and equity, particularly in developing economies.
An International Call to Action
Carbon markets can benefit from the increased liquidity and transparency provided by bitcoin, according to Brad Garlinghouse. Garlinghouse noted that their $100M investment directly reacts to the worldwide appeal for businesses to help solve global warming by mobilizing resources, like technological innovations, strategic cash, and talent.
He continued that carbon markets are crucial for attaining climate targets, but cutting emissions and migrating to a low-carbon era is critical. In March, Ripple pledged 1B Ripples to support new XRPL use cases on the decentralized blockchain network. With FINCI, a worldwide internet banking company located in Lithuania, Ripple has partnered to use RippleNet and XRP to facilitate cross-border B2B payments using cryptocurrency-enabled efficiency.