Image courtesy of CCNG

A Hong Kong–listed climate solutions company has completed what it describes as the world’s first compliant issuance of verified carbon tokens on a regulated digital asset exchange, marking a notable step in the convergence of blockchain infrastructure and carbon markets.

China Carbon Neutral Development Group (CCNG) announced that its wholly owned subsidiary, Global Carbon Asset Management Co., Ltd, has tokenised carbon credits into digital assets backed by independently verified emissions reductions. The issuance was carried out on DigiFT, a regulated digital asset exchange based in Singapore.

Structuring Carbon Credits as Digital Assets

The transaction involved the issuance of 500 million digital “carbon coins,” each backed by a pool of 500,000 tonnes of carbon credits certified under the Verified Carbon Standard. Each token is directly linked to a third-party verified carbon credit, ensuring that the digital assets correspond to real-world greenhouse gas emissions reductions or removals.

According to CCNG, this represents the first time carbon credit–backed tokens based on an internationally recognised standard have been issued in a compliant manner on an overseas regulated blockchain platform.

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Addressing Structural Gaps in Carbon Markets

The initiative is designed to address persistent challenges in voluntary carbon markets, including limited liquidity, high transaction costs, and a lack of transparency. By tokenising verified credits, CCNG aims to enable faster settlement, clearer ownership tracking, and improved access for institutional participants.

The project uses a real-world asset (RWA) tokenisation structure that combines an alliance chain with a public blockchain. This hybrid approach is intended to meet regulatory requirements while still allowing on-chain transfers and transparent record-keeping.

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Implications for Sustainable Finance

Market participants see tokenisation as a potential tool for improving price discovery and expanding participation in carbon markets, particularly among financial institutions that require traceability and compliance with recognised standards. By anchoring the tokens to credits certified under Verra’s framework, the issuance seeks to address concerns around quality and credibility that have affected parts of the voluntary carbon market.

The move also reflects growing interest across Asia in applying blockchain technology to sustainable finance, as regulators and market operators explore ways to modernise environmental markets without undermining integrity.

Looking Ahead

While still at an early stage, CCNG’s issuance could serve as a reference model for future compliant carbon tokenisation efforts. If adopted more widely, similar structures may help bridge traditional carbon markets with digital finance infrastructure, potentially reshaping how verified carbon assets are traded, priced, and accessed globally.

Image courtesy of CCNG

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