The Green Assets Wallet is a trust platform for issuers and investors in green impact and it’s the world’s first blockchain-based platform for easy validation and impact reporting of green bonds.
What is Green Assets Wallet?
The Green Assets Wallet (GAW) is a unique case where blockchain brings the real value for investors, validators, issuers of the Green Bonds. The platform is built on blockchain aimed to make the investments into green bonds more transparent and immutable Green Impact Verification. Such platform on the blockchain will give the investors the confidence to trust issuers and allows for strong audit trails. It was launched into production in Sep 2019 ahead of the market launch. The project is under the leadership of the Stockholm Green Digital Finance (SGDF), where 4ire Labs team is responsible for development and integration of Chromia blockchain. The project is supported by SEB bank, Government Authorities in Sweden and Germany, Öhman, the Stockholm Sustainable Finance Center, GIZ, CICERO (Center for International Climate Research and the leading global provider of Second Opinions on green bonds).
Its key benefits:
- Trust, transparency and immutable history
- Efficient and quantifiable impact data reports
- Validation of green bond market commitments
How does the architecture look like?
The platform is built on Chromia blockchain – both a blockchain and a relational database. Alongside this, code on the blockchain is also transparent, so green impact calculations are always performed using the same fair method. No surprises, and no arguments about rounding errors! Chromia is written on Rell language (specifically written for Chomia). Most dapp blockchain platforms use virtual machines of various kinds. But a traditional virtual machine architecture doesn’t work very well with the relational data model, as we need a way to encode queries as well as operations. For this reason, we are taking a more language-centric approach: a new language called Rell (Relational language) will be used for dapp programming; in the context of Rell, blockchain as a method for secure synchronization of databases on nodes of the system. Thus Rell is very database-centric.
- The Green Assets Wallet won the Nordic Ideas Award by Nordea Norge and Xynteo.
- On 5th Sep 2019, GAW was also presented at 4ire Labs FinTech Meetup in Stockholm together with Jorgen Mundin, Chief Solution Architect at Chomia Blockchain.
- Jörgen Modin, Chief Solutions Architect at Chromaway was presenting the case, where was integrated Chromia blockchain in Green Debt Market aimed to make the investments into green bonds more transparent and immutable green impact verification. This is a mutual project with 4ire Labs and Stockholm Green Digital Finance.
Why does Sustainable Finance matter?
The green bonds are not delivering on their fullest potential in terms of market size or additionality, however, there has been a significant growth each year. At the same time, investors want to be protected and have a positive and measurable impact on society. Green bonds experience enormous market potential expected to reach vital $1 trillion in 2020 compared with $250 bn in 2019. Thus, it could be a huge potential market where investors, validators and issuers of the Green Bonds could be connected and having transparent relationships.
When did the journey of Green Assets Wallet start?
The Green Assets Wallet (GAW) has passed a very long journey before getting the grant and it started in 2017 when they won Climate KIC Ideation Award and secured seed funding for the development of a prototype.
- Securing 435 000 EUR from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), for the development of a Minimal Viable Product in 2018.
- Establishing and co-creating the technology with a multidiscipline team of leading green finance experts, blockchain specialists and sustainable investment practitioners.
- 7 pilot issuers from Latin America, Asia and Europe testing and co-developing the technology.
- Launching the first version at Climate Finance Day in Paris 2018.
- Securing 300 000 EUR from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), and 500 000 SEK from Stockholm Sustainable Finance Centre for taking the MVP to Production Standard in 2019.
What is next?
As blockchain technology continues to disrupt the finance sector through decentralization, immutability, and cost/capital efficiencies, we are very delighted to be part of this revolution. The GAW has been already launched into production and we have big plans with the list of improvements. The goal for 2020 – full market expansion with the new investment types (crowdfunding) and automated API integrations.
Current status: The official released was on 12th Dec and it is still an on-going collaboration with the Stockholm Green Digital Finance. We will be working on implementing new features for the investors, integration with the exchanges in 2020.