With this collaboration, we aim to create a next-generation secondary market designed for transparency and sustainable investments.
On the Likvidi platform, investors will be able to invest in digital assets in the sustainability sector, starting with high-yield green bonds that can yield between 5-12% annually.
Both entities realize that we share the same commitment to impact investing and blockchain-based digital securities that offer better transparency for investors and are more efficient to issue for projects and companies that need capital. These are in line with the 2015 Paris Agreement and the ongoing Cop26 meeting in Glasgow, Scotland.
Currently, the biggest sustainable finance sector is green bonds, where the global market stands at a staggering US$1 trillion and is growing fast. This year, the growth is estimated to be around 40%, with US$375 billion on new issuances.
With this opportunity in sight, Likvidi has developed an end-to-end digital asset launchpad designed especially for sustainable finance. Green Bond Launchpad puts each asset’s sustainability and financial information on the blockchain. This way, investors get improved transparency to green investments, which has had problems with the so-called green-washing for many years.
Additionally, these relatively illiquid securities will have more liquidity by turning smaller US$10-US$100 million green bonds into digital assets. This is how the partnership will improve this fast-growing fixed-income market.
Speaking about the partnership, Ransu Salovaara, CEO of Likvidi said, ”Our tokenized green bonds together with IX Swap’s automated market making and liquidity pools will bring new investors and projects to DeFi. Our mission is to enable more investments towards renewable energy projects using green bonds for funding. The idea of global liquidity will certainly help us to finance more solar parks and wind farms around the world”.
At IX Swap, we are preparing for the financial markets' decentralized finance-meets-centralized finance innovation, that is the most efficient way to tackle regulatory challenges.
Lending his thoughts about the partnership with Likvidi, Co-Founder of IX Swap, Aaron Ong said, “Our existing DeFi ecosystem largely revolves around the ability for cryptocurrencies/NFTs to be staked, borrowed, and lent. The current DeFi applications for STOs are limited to none despite the exponential growth of the STO market. IX Swaps seeks to provide the necessary infrastructure to provide secondary liquidity to all STOs globally and seeks to accelerate the adoption of STOs through valuable partnerships like Likvidi who bring real assets onto the blockchain.”
This relationship between IX Swap and Likvidi is likely to be the first of several such partnership announcements that will transform the green bond and impact investment sectors with the benefits of blockchain.
Likvidi, Finnish for liquidity, is the world’s first sustainable decentralized finance (DeFi) platform built on the Ethereum blockchain. It brings together pioneering companies that want to solve climate change with profit-driven investors to maximize and create positive climate impact.
For more information about First Digital, please visit https://www.likvidi.com/.