Debt & Fixed-Income

Subtype

Definition: Onchain green bonds and loans for verified environmental projects.

Description

These include tokenized debt instruments for solar farms, reforestation, clean transport, etc. They can use smart contracts for repayment flows and impact verification.

Example

Green bonds are debt securities issued to finance projects with positive environmental impacts, such as renewable energy, energy efficiency, or climate adaptation initiatives. They provide fixed-income investors with an opportunity to support sustainability while receiving regular interest payments and principal repayment at maturity. Tokenized green bonds represent a digital evolution of this concept by issuing bond-like instruments on blockchain platforms. Although still nascent, projects like Frigg.eco have pioneered tokenized green bonds, aiming to broaden investor access and streamline capital flows toward verified environmental projects.

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