OCBC, one of Singapore’s top commercial banks, announced a partnership with Metaverse Green Exchange (MVGX), a local crypto exchange, to issue crypto tokens connected to investments in environmentally friendly technology.
Under the terms of the agreement, the two companies will issue carbon credit tokens that businesses may buy to offset their carbon footprint. The token sale revenues will be used to fund green initiatives such as reforestation and renewable energy.
MGVX’s distributed ledger will be used to generate the tokens. They plan to begin later this year and will utilize blockchain technology to keep track of purchases and investments in green initiatives.
The effort is primarily aimed at high-carbon industries like energy, shipping, and steelmaking, which are struggling to reduce their environmental effect. Instead, such businesses can buy green tokens to offset their carbon footprint.
OCBC and crypto
While the bank has previously expressed interest in blockchain technology, Monday’s statement is one of its first official forays into the field.
OCBC announced plans to create its own crypto exchange last year, citing rising crypto use in Singapore. However, it has yet to provide an update on its plans. However, early this year, it was reported that the bank was recruiting crypto and blockchain experts.
In the face of increasing competition from digital lenders, the bank has also laid out a three-year plan to expand its internet footprint.
Singapore has some of the friendliest cryptocurrency rules, making it a popular destination for crypto companies.
The issuing of green tokens is an example of crypto’s ecologically friendly applications. The high energy cost of mining is drawing increasing criticism from lawmakers and investors.
However, pro-crypto advocates believe that the industry is moving toward renewable energy and that proof-of-stake blockchains use very little energy.