This week, Xpansiv, the global “intelligent commodities” exchange whose bid to develop a deep, liquid, tradable and transparent global market for ESG-inclusive energy, carbon and water resources was an early feature of Investable Universe (and the podcast), announced a landmark partnership. Xpansiv will integrate Daml, a multi-party platform developed by Digital Asset, one of the leading builders of blockchain applications for financial services (including five of the world’s ten largest stock exchanges), into its own commodity trading infrastructure.
According to Xpansiv, the partnership builds on both companies’ pioneering efforts in digitization and market innovation, by combining Xpansiv and Daml’s capabilities to transform raw physical commodity data into tradable assets that include credible ESG information. The combined architecture will create an immutable record of production and ESG data for the entire lifecycle of a digital commodity, from asset creation to trading, so clients seeking to align with ESG benchmarks can source and obtain assets that conform to accepted climate accounting standards.
“The ESG wave continues to build,” said Xpansiv CEO Joe Madden. “We have applied our core-competency in ESG and commodity-market infrastructure to prove what’s possible, drive liquidity, and build relationships with established market participants. Now it’s time to scale, which requires process standardization and interoperability, and Digital Asset is the ideal partner to help us build that ESG ecosystem. This partnership delivers a one-plus-one-equals-four scenario.”
In addition to trading exchanges, Daml applications are used in clearing houses, banks, insurance companies, and supply-chain infrastructure providers. Partnering with Xpansiv adds global energy and agricultural producers, commodity merchants, investment banks, price reporters, utilities, airlines, derivatives exchanges, and standards bodies to that client list.
“Xpansiv with Daml is a powerful combination that will set the standard for ESG markets worldwide,” said Yuval Rooz, Digital Asset Co-founder and CEO. “Using Daml to underpin the infrastructure for new data-driven, ESG-inclusive assets—like methane performance, GHG intensity, and carbon-removal products—will drive liquidity and enable these new markets to flourish. Xpansiv is at the heart of this movement, and we look forward to building a next-generation platform alongside the Xpansiv team who are already writing Daml.”
Earlier this year, Xpansiv entered a strategic partnership with Validere, a data intelligence platform for oil and gas product quality, that tracks data on more than 4.8 million barrels of crude oil across the supply chain (and comparable gas production) for more than 50 leading North American energy companies. Under the partnership, clients of Validere and Xpansiv will be able to attach a suite of attributes—including ESG attributes calculated and verified by independent certification bodies—to the molecules that Validere tracks throughout the energy supply chain.