KlimaDAO Japan to launch carbon credit marketplace with Progmat

KlimaDAO Japan intends to open a new marketplace for carbon credits, called the KlimaDAO Japan Market. Progmat has joined the Progmat stablecoin platform to study carbon credit trading by companies and local governments using a stablecoin. The project can eventually be expanded internationally.

KlimaDAO, a decentralized independent organization fighting climate change, will trade J-Credit carbon credits on the KlimaDAO Japan market, which launched on the Tokyo Stock Exchange in October. Trading on Carbonmark can gradually expand to a global scale, which KlimaDAO is already doing, according to a statement.

J-Credit trade volumes are still “limited”. The global carbon credit market is only $2.9 billion, of which only $288.1 million is voluntary credit, the statement said. In the year In 2030, the world market is predicted to reach 172.9 billion dollars, of which Japan accounts for 1.9 billion dollars.

Progmat was founded by Japan's largest bank, Mitsubishi UFJ Financial Group (MUFG), a consortium of banks led by Mitsubishi UFJ Trust and Banking. KlimaDAO settles trades using the yen-pegged JPYC coin to trade on infrastructure provided by Optage, a telecommunications company operating in the Kasai region.

Related: Progmat stablecoin platform takes shape as a wallet, liquid providers join

The partners are starting the second phase of their research after finding parts of the ecosystem in April. Now, JPYC will be registered as an electronic payment method, and Mitsubishi UFJ is preparing to serve as the coin's trustee. Phase 2 is expected to be completed by the end of the year and the service could start from there. Integration with CarbonMark will also begin.

In Chapter 3, overseas trade will begin and financial institutions and companies will be supported to develop their own market place.

Binance and MUFG announced a study in September to use Progmat to mine yen-pegged and other stablecoins. In June, a stable coin was issued in Japan.

Billionaire Mark Cuban is one of KlimaDAO's backers. The permissionless protocol runs on the Polygon network, which has pledged to be carbon neutral by 2022.

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