Capital markets News

The StoneX tie up with DLT-based ACX for carbon credits could be a big deal

sustainability carbon credits

Yesterday AirCarbon Exchange (ACX) and StoneX Group agreed to work together on a U.S. carbon marketplace that will be part of the StoneX Platform. ACX provides exchanges for voluntary carbon credits and various blockchain-based tokenized carbon assets. Its backers include Mubadala and the Deutsche Börse.

One of the reasons this tie-up is so promising is that StoneX enables access to various potential clients. Nasdaq-listed StoneX (market cap: $1.95bn) provides execution and clearing services in financial markets, especially commodities. A reasonable chunk of its revenues is from corporates for commodities trading and hedging for the likes of corn, wheat, soy and energy. Many of those corporates could also potentially be buyers of carbon credits. 

“We are excited to link our markets in Abu Dhabi, Singapore and Brazil to StoneX, further expanding our reach into North America and the broader StoneX platform of over 54,000 commercial, institutional, and global payments customers,” said William Pazos, Co-CEO and Co-Founder of ACX.

StoneX also launched a digital assets division mid-last year. And a hint of its direction might be the recent hiring of Matthew Ardizzone from Atomyze, which is involved in tokenizing precious metals.

However, the carbon credits sit within the StoneX commodities division. It previously worked with ACX in Brazil.

“This agreement solidifies StoneX’s long-term commitment to carbon trading and creating increased transparency in this fast-moving market,” said Oscar Schaps, President of Latin America FCM Division, StoneX. “Leveraging ACX’s expertise and established presence in the marketplace will add significant value for our clients.”

ACX initially provided CORSIA tokens that support carbon offsets for the aviation sector. But it now offers a diversified range of sustainability tokens, including nature-based projects, renewable energy tokens and carbon capture credits. It’s also exploring solutions for plastics recycling in Abu Dhabi. The credits are stored on the Polygon public blockchain.

Image Copyright: surasaksuwanmake / 123rf