Greenium: Empowering Sustainable Investments on R3’s Corda
Greenium’s new digital “leasing asset securitization platform” platform provides a scalable, flexible, and secure platform on which sustainable leasing assets are securitized and simultaneously made accessible for environmentally conscious investors. This lowers barriers to entry for participation in the sustainable finance world.
With a vision to drive positive change and create a sustainable future, Greenium opens new possibilities for green investments like never before. The global transition to a low-carbon economy is accelerating, and the demand for investment opportunities in sustainable assets has increased significantly – challenging traditional finance (TradFi) channels. Institutional investors who want to invest directly in sustainable physical assets often only find very complex solutions. These usually involve the acquisition of entire assets, high service costs and complex legal setups.
Greenium is thrilled to announce that, Bikeleasing GmbH, one of the leading providers for corporate leasing bikes in Germany will be the first client on the Greenium platform. Bikeleasing, through its digital platform, delivers more than 150,000 leasing bikes annually to corporate clients throughout Germany and Austria. “The market for corporate leasing bikes is expected to surpass 2bn EUR in the next years, slowly but surely we are reaching the limits of traditional financing channels, the Greenium Platform is the ideal solution for us as it provides scalability, transparency and security in combination with futureproof DLT technology” states Paul Sinizin Co-CEO of Bikeleasing. Luc Olinger, CEO of Greenium adds “Bikeleasing GmbH is an incredible success story, I am proud that together we were able to design a groundbreaking solution to support Bikeleasing’s amazing growth for the years to come.”
Greenium is at the forefront of a revolutionary shift. The platform aims to connect investors with sustainable projects and businesses in need of financing, helping to accelerate this transition to more sustainable initiatives. Investors will have visibility into the growing pipeline of sustainable leasing assets on the platform and can digitally determine investment criteria and preferences.
Sustainable, Secure & Futureproof Collaboration
All of this is made possible by distributed ledger technology (DLT) and the digital, automated nature of Greenium’s platform solution – as DLT provides a scalable, transparent and secure solution for investing in and financing sustainable lease assets. Specifically, Greenium is based on R3’s Corda, the world’s leading distributed application platform, and is a business network on the independent Corda Network.
Greenium leverages Corda’s cutting-edge capabilities to bring transparency, efficiency, and trust to the world of sustainable investments. Corda’s unique features, such as its smart contract functionality enables seamless collaboration and streamlines complex financial processes. By harnessing Corda, Greenium ensures a secure and immutable record of transactions, eliminating the need for intermediaries and reducing the risk of fraud. The platform also ensures compliance with regulatory requirements, giving investors peace of mind when investing in sustainable projects. Once all investment criteria are determined, securitization takes place classically via a specially established Luxembourg securitization vehicle (SPV).
How it works
TradFi channels are no longer fit for scalability, as individual banks’ counterparty exposures are constrained, and leasing companies can rely on only a limited number of banks.
This means a more granular solution is required that would facilitate investment without the need for investors to actually acquire and service the assets themselves – one way to do this is via a lease structure. Strong demand necessitates significant upfront financing by the leasing company. With Greenium’s technology-enabled end-to-end financing solution, processes and workflows of both leasing companies and investors can be accelerated – with this Greenium enables participants to focus on scaling and growing their core business.
The Greenium solution facilitates the financing of lease objects contributed by leasing companies. It digitizes lease objects into Basis Tokens, which can be bundled into Greenium Tokens. Investors can then set criteria for Greenium Tokens, which receive ratings and are represented within a securitization fund. Lease payments are used to update Basis Token values, and recovered asset values are credited to corresponding Basis Tokens. Investors can then track Greenium Token performance, and once all Basis Tokens are redeemed, the Greenium Token dissolves, so remaining asset value is distributed to investors.
Driving the Future of Scalable, Secure and Flexible Investment Opportunities
Greenium presents a vast array of investment opportunities in the sustainable assets sector. From renewable energy projects and eco-friendly infrastructure to green bonds and impact funds, the platform connects investors with diverse options to support sustainable initiatives. Through Corda’s scalability, Greenium can accommodate a growing number of investors, ensuring that anyone, from individual investors to institutional players, can participate in the sustainable investment revolution.
Greenium’s users will also have full visibility into the investment process, tracking the journey of their funds and verifying the authenticity of the underlying assets. By fostering transparency, more trust is established among investors, ultimately driving greater adoption of sustainable investments.
In the future, it will also be possible to invest directly in a Digital Token (as electronic security according to German law eWPG) via Greenium instead of a classic securitization. Investors will always have real-time insight on investments, and therefore full transparency, analytics and reporting-on-demand are further features of the Greenium platform. This is set to revolutionize sustainable finance for decades to come.