IBM To Launch It’s First Cryptocurrency On Stellar Blockchain
Technology and computing goliath International Business Machines Corporation, better known as IBM, has announced a partnership with Veridium Labs to launch a token on the Stellar blockchain. Veridium Labs Ltd. is an environmental fin-tech startup that aims to provide a digital asset solution for consumers and businesses to offset their environmental footprints.
The issue that this partnership aims to solve is that third-party carbon credits are often difficult to value and mark on a traditional balance sheet. The “verde” token will act as a layer upon the carbon credit to give it value and make it easier to track and account for by using the Stellar blockchain. Todd Lemons, CEO of Veridium labs said that the underlying formula for the valuation of the token would involve “carbon density per dollar times product group.” The startup is still ironing out the kinks, and working with several global institutes to help determine the value for each product group.
IBM’s role in the partnership is to handle the commodity aspect of the verde token to make sure that it is a viable asset. The company has previously worked with Stellar, and it’s own lumen cryptocurrency, so they have experience in overseeing the buying, selling, and managing of cryptocurrencies. IBM also manages nine nodes on the Stellar blockchain, so it comes as no surprise that they have decided to bring the verde token into the mix.
The tech giant has expressed that they are willing to work with other blockchains in the future, but as of right now issuing their token on the Stellar blockchain shows that a long-lasting relationship might be in place. This partnership also highlights another considerable leap in traditional tech companies moving into the blockchain arena to eradicate issues that have proved to be too challenging for the traditional sector.
Bridget van Kralingen, senior vice president of IBM’s blockchain division, said, “By using a public, permissioned blockchain network, we can help Veridium create a new sustainable marketplace that is good for business and good for the world.” The primary goal of the verde token is too easily track and manage the carbon footprint of businesses on an open ledger and ultimately allow each consumer to offset their footprint through the exchange.