Neutral, a next-generation exchange for environmental assets and SCB Group are partnering to create the future of environmental asset markets.
Our partnership is announced as mainstream media claims ‘the future will be tokenized‘, amplifying an increasing momentum behind the tokenization of Real World Assets (RWAs) such as stocks, commodities, and bonds. Larry Fink and David Solomon, CEO of Blackrock and Goldman Sachs respectively both espoused the potential for tokenization to revolutionize financial markets, as reported by Forbes in the recent article, Larry Fink Says Tokens Are “The Next Generation For Markets”
Moving trade onto blockchains promises to increase the efficiency and reliability of trading infrastructure, to provide unprecedented transparency and traceability, and to increase asset accessibility.
Environmental asset markets and their associated RWAs were the first to gain significant momentum on-chain with millions of carbon credits tokenized, which generated billions in trading volume. That momentum did not lead to widespread adoption of tokenized environmental asset markets amongst more traditional market actors due to missing infrastructure and regulation around these tokenized assets.
SCB x Neutral for market maturity and increased adoption.
An efficient market requires intelligently designed assets, efficient and regulated trading infrastructure, and sophisticated traders that can bring liquidity and ensure prices are consistent across venues. The Neutral x SCB partnership brings these three key pillars to environmental asset markets. Neutral will provide the regulated infrastructure for SCB to access the next generation of environmental assets launched by Neutral and our partners. SCB will leverage our expertise in market-making environmental assets to provide liquidity, execute trades on the exchange, and arbitrage with OTC markets and other venues.
Our partnership helps Neutral act as the efficient execution layer for environmental asset markets and endows SCB with a distinctive strategic edge.
“SCB Group is a first mover in environmental markets,” says Farouq Ghandour, CEO of Neutral. “They can spot trends based on fundamentals and bring their expertise and capital to accelerate those trends. The next generation of assets and infrastructure needs players like SCB with resources, expertise, and global reach to increase their adoption. We’re thrilled to work with [SCB CEO] Kevin McGeeney and the SCB team to define the future of environmental asset markets.”
Kevin McGeeney says, “Our partnership with Neutral signifies our commitment to building the future of environmental asset markets.
“As the U.N.’s International Panel on Climate Change confirms that we’re likely living through the hottest period in the last 125,000 years, we recognize the urgent need to find creative solutions to address climate change now. By leveraging our market-making capabilities and global reach, we bring liquidity, consistency, and expertise to environmental markets, creating efficient trading infrastructures and intelligently designed assets, to help our clients’ businesses grow and to advance towards a low carbon future.”
