Neutral, an innovative startup in the environmental asset market, recently announced its successful $3.2 million financing round.
Led by North Island Ventures and joined by prominent contributors, including Redalpine, Digital Currency Group (DCG), Cerulean Ventures, Factor Capital, Very Early Ventures, and Rarestone Capital, this significant financial injection positions Neutral as a pivotal player in the sustainable future of global finance.
Neutral operates as an environmental asset exchange, specializing in tokenized carbon credits, renewable energy credits, and carbon forwards.
Their unique approach integrates these assets with tailored market infrastructure to provide enhanced efficiency, transparency, and trust within these markets.
The Rising Demand for Environmental Assets
In recent years, environmental assets, encompassing carbon credits, renewable energy credits, and other eco-friendly commodities, have experienced a remarkable surge in demand.
This surge is projected to gain unprecedented momentum, driven by the global commitment to sustainability following the Paris Agreement.
Concurrently, the conventional market infrastructure is adapting to leverage blockchain technology and tokenized assets to enhance trade efficiency, settlement processes, and transparency.
“Environmental asset markets price and provide funding mechanisms for sustainable activities, such as carbon sequestration or renewable energy production.
As we see ever-increasing interest from businesses and sovereign entities to invest in sustainability, we need the right infrastructure to price and trade this new generation of assets. Neutral is building that infrastructure and we are excited to bring it to market.” – Farouq Ghandour, Neutral CEO
Bridging the Gap Between Demand and Infrastructure
Neutral is uniquely positioned at the intersection of these two dynamic global trends. The company’s mission is to establish advanced market infrastructure to support the environmental asset markets of the future.
The initial funding will facilitate the launch of a regulated exchange in Europe, with ambitious plans for expansion into other vital jurisdictions in North America and Asia.
Liquid Instruments for Environmental Assets
In addition to the regulated exchange, Neutral is working closely with strategic partners to develop liquid instruments that mirror the characteristics of traditional commodity and debt markets.
Environmental assets, with their distinct methodologies, locations, and intervention years, present unique challenges in creating effective liquidity instruments. These hurdles have limited trade efficiency and overall market growth.
Neutral is committed to pioneering the development of the next generation of liquid instruments, ushering in a new era of growth for environmental asset markets.
In a world where environmental conservation and sustainability have taken center stage, Neutral’s innovative approach to market infrastructure for environmental assets couldn’t come at a better time.
This financing round underscores the growing recognition of the pivotal role that market infrastructure plays in advancing environmental conservation and sustainability. Neutral is primed to lead the way into a transformative future.
“We believe that tokenized environmental assets will be one of the first categories of real-world assets that are ‘born’ on-chain.
These assets will need a new sort of venue, to enable liquidity and price discovery, so they can eventually make their way to end-buyers determined to use markets to reduce the impact of climate change.
We expect Neutral will be that venue, and are extremely excited to work with their team.” – James Hutchins, Co-Founder of North Island Ventures.
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