TreeBR, an alliance of Amazon rainforest landowners and forest managers, has issued a land-backed security token (TREE) to help rural communities monetize their land through conservation.
TREE will be issued on the Liquid Network as a security token, representing exactly one ton of CO2 offset, and later listed on the national Seychelles securities market, MERJ Exchange.
By bringing private landowners directly to the global voluntary carbon offset market, TreeBR hopes to take part in preserving the Amazon rainforest, which in Brazil alone is more than 35% privately owned.
Asset Issuance on Liquid
As a tradeable security token on Liquid, TREE offers investors a unique set of value propositions not available in traditional markets:
- Removal of middlemen: establishment frameworks are inefficient, over-regulated, and highly centralized, whereas the security token model eliminates burdensome intermediaries to form a more accessible and direct investment opportunity between parties.
- Price appreciation and liquidity: as demand for voluntary carbon offsets increase, investors have easy online access to a global marketplace that allows for the near-instant buying, trading, and retirement of tokens, helping to bring liquidity to an otherwise rigid market.
- Regulatory compliant: TREE is a digital security on the global stock exchange MERJ, where landowners must adhere to industry standards and periodic assessments by a team of independent regulators for a minimum of 30 years.
- Transparency: an issuance on Liquid provides all parties with an immutable record of ownership on the blockchain, allowing the underlying carbon offset to be retired at the request of the token owner at any time.
Laying the Foundation for a Decentralized Marketplace
The TREE security token is a multi-party collaboration of TreeBR, Digital Markets (DIGTL), and MERJ Exchange and is indicative of the growing demand for innovative solutions around asset tokenization that is secure, scalable, and regulatory compliant.
Liquid's codebase is derived from the world-class engineering found in Bitcoin Core. Leveraging L-BTC as its native currency, Liquid allows easy conversion between all issued tokens and the industry's most resilient digital asset, bitcoin, as well as stablecoins like USDt and L-CAD. This interoperability means users can take advantage of atomic swaps and multisig security for greater functionality.
Liquid has also been used as the underlying infrastructure for issuing the Blockstream Mining Note (BMN) and the Exordium EXO token on the EU regulatory platform STOKR as well as NFTs across the art, gaming, and film industries.
Integrate Liquid and Join the Federation
As part of the announcement, MERJ Exchange and DIGTL intend to join one of nearly 60 members that maintain the Liquid Network through oversight functions to guide its development. Liquid Federation members gain all the advantages of the Liquid Network's fast settlement times, privacy, and asset issuance, as well as the ability to peg in and peg out bitcoin from the network without a third party.
If your company is interested in joining the Federation and learning more about integrating Liquid into your business model, complete the membership form through the official Liquid Network site or reach out to our representatives by email.
Disclaimer: The information above has been prepared solely for informational purposes only. It is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities. Full terms and conditions are available on the TreeBR website.
