StoneX cooperates with ACX based on DLT for carbon trading

On March 24th, it was announced that Air Carbon Exchange (ACX) and StoneX Group agreed to cooperate on the US carbon trading market, which will become a part of the StoneX platform.

Interpretation of this information:

The recent announcement made by Air Carbon Exchange (ACX) and StoneX Group could be a significant development in the United States’ carbon trading market. Both companies have agreed to cooperate, with ACX offering its innovative, digital platform for carbon trading to be integrated into StoneX’s existing platform. It is expected that this partnership will enable StoneX to expand its footprint in the climate risk management space and enhance ACX’s position as a leading digital marketplace for carbon offsets.

The collaboration aims to bring more efficiency and transparency to the US carbon trading market. Currently, the industry’s traditional trading practices involve many intermediaries that can increase the cost of transactions and reduce market liquidity. This situation could change as ACX’s digital platform brings new opportunities for market participants to trade directly without intermediaries, thereby reducing costs and improving liquidity.

StoneX’s platform is a comprehensive multi-asset risk management system used by many institutional clients worldwide. It provides a highly sophisticated set of tools for trading, hedging, and risk management for various commodities, currencies, and derivatives. Inclusion of ACX’s digital platform could establish a new product segment for the institutional client base. Furthermore, StoneX’s vast customer base may also unlock new opportunities for ACX to increase its trading volumes, bringing more liquidity to the carbon trading market.

The ACX platform provides access to an extensive global network of buyers and sellers involved in the carbon offset market. It uses blockchain technology to ensure transparency and traceability of traded units, making it easy to verify compliance with regulation and standards established by various governing bodies. ACX also ensures that every carbon offset offered on its platform is verified and represents a real reduction in greenhouse gas emissions.

A significant benefit of this collaboration could be that it will make it easier for market participants to manage their carbon compliance obligations more cost-effectively. The integration of ACX into StoneX’s existing platform could provide substantial benefits to the entire carbon trading industry, with market transparency and liquidity improving as well.