I don't think many people realize what a milestone for #ReFi this is...
On @ReFiPodcast we hear the story of @RobinKlemens launching @kumo_earth with support from leading carbon project developers and a tier one bank.
🎥 youtu.be/pyGD1fZfe8U
🎧 pod.fo/e/210521
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Why is this so important for #ReFi?
Since the launch of @toucanprotocol in 2021 the #ReFi movement has been looking for institutional adoption of tokenized carbon, but we've been struggling for a clear use case that meets the needs of project developers & large banks.
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After beginning with the vision of a 100% carbon-backed stablecoin, @RobinKlemens and his team at @kumo_earth dug deep and did months of extensive research interviewing institutional leaders across project developers and large investors.
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They reached two key insights:
1. Project developers needed access to cold hard cash and had carbon assets to back
2. Investors needed to diversify their portfolio with increasing pressure from shareholders and regulators to invest in climate positive assets
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With incoming supply of carbon on hold, they spoke to dozens of leading project developers who were incredibly helpful and forthcoming about their financial challenges.
There was over $10B of latent carbon assets on their balance sheets that the market couldn't service! 🤯
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Thanks to the infrastructure layer provided by folks like @ToucanProtocol, @solidworldhq and @thallo_io there was a clear foundation upon which @kumo_earth could build out a lending marketplace which would allow project developers to leverage their carbon assets for loans.
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This use case of a project developer tokenizing their spot and forward carbon credits in order to realize their value in the form of a loan was an incredibly powerful concept, and it started gaining momentum on both sides of the market.
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They also began gaining significant momentum with a number of large traditional finance players, including one tier one bank.
This seems to be a major opportunity for the #ReFi space to lean into the increasing appetite from institutional actors.
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The folks at @kumo_earth ended up deploying an MVP at COP that leverages @solidworldhq's tokenized mangrove forwards, #CRISPM, to take out a loan in FIAT—not crypto.
youtube.com/watch?v=2S9bh4iNJa8
This is the fascinating bit: The carbon is tokenized but the loan is settled in USD.
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With the infrastructure layer of @solidworldhq we now have an app layer of @kumo_earth which could even service a marketplace like @senken_io to allow project developers to gain immediate cash flows via a loan while waiting for their credits to sell on the market.
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The collaboration opportunities emerging in the next wave of #ReFi are enormous...
I'm super excited to see the incoming capital flows financing mangroves via @solidworldhq and accessing liquidity for further project development via @kumo_earth.
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