First Sustainable Crypto Index with ESG Ratings by Trakx
Trakx and Green Crypto Research announce the launch of the first ESG crypto index
PARIS, October 4th, 2022 – Trakx, an emerging global fintech company providing thematic Crypto Tradable Indices ("CTIs") through its registered Tier-1 trading platform, today announced it has entered into a strategic partnership with Green Crypto Research (GCR), an independent non-profit association that developed the first ESG rating methodology for crypto-assets. Based on the ESG assessments conducted by GCR, Trakx has launched the very first sustainable crypto index: Trakx ESG.
Trakx ESG is a crypto tradable index (CTI) that is designed to replicate the price of crypto assets given an A rating by GCR in the categories of environmental and social impact as well as governance in regard to the asset’s underlying technology. GCR leverages its industry-leading ESG analytics framework to score the largest assets in all three areas. Once selected, the crypto assets are weighted according to their market capitalisations subject to a cap so that the CTI can be properly diversified.
Lionel Rebibo, CEO and Co-Founder of Trakx, commented on the news, “The environmental impact of crypto has been heavily debated since its inception. With the importance and relevance of digital assets continuing to expand around the globe, many of our investors have expressed interest in the ESG side of crypto, leading us to create Trakx ESG. Through this latest CTI, we can provide our institutional clientele with a secure, transparent and liquid crypto ESG product, which allows them to gain exposure to this premier asset class in a regulated and socially-minded manner.”
GCR is an independent non-profit organisation based in Switzerland, that specialises in evaluating the sustainability of crypto-assets. The rating follows transparent rules similar to ESG rating in traditional finance. The GCR rules for scoring crypto assets are:
- E: The environmental score quantifies the crypto-assets ecological impact. This metric not only refers to the actual energy consumption caused by the mining or validation of crypto-assets, but also the electronic waste and associated awareness and management to reduce emissions.
- S: The social score measures the extent to which the blockchain may empower people economically or socially and how evenly assets are distributed. Entry and usage barriers as well as social issues play an important role.
- G: In the governance criteria, GCR investigates how transparent, reliable and secure the underlying technology is. GCR assesses whether there are conflicts of interest, security problems or other issues. The Governance criteria represents the combination of behavioral guidelines, principles, and standards.
Isabel Gehrer, President of GCR, sees the collaboration as an important step towards a sustainable crypto universe: "For many investors, sustainability is a relevant factor when choosing assets. With the Ethereum Merge in mid-September and the corresponding improvement of ETH's ESG rating to a B-score, it is anticipated that the crypto universe will become more aligned with sustainable principles in the long term.”
Trakx ESG addresses this need for the first time in the crypto market, offering ESG-conscious investors the opportunity to invest in sustainable crypto-assets.
About Green Cryptocurrency Research
Green Crypto Research (GCR) is a non-profit association based in Zug, Switzerland, that specialises in evaluating the sustainability of cryptocurrencies. The organisation was founded in May 2021 and developed the world's first ESG rating for crypto-assets.
Trakx is a global fintech company creating new standards for digital asset investments. Through our trading platform, we offer thematic Crypto Tradable Indices (CTIs) and customised solutions, providing sophisticated investors a high degree of compliance, custody and liquidity. Trakx is registered with the French regulator (AMF).
For more information, please visit us online at www.trakx.io