Xpansiv is the world’s leading exchange for trading ESG assets, which include carbon, water, electricity and fuels. It provides a vertically integrated solution for trading, clearing, settlement and registry. It effectively is like the ASX, Computershare and Bloomberg all combined for these ESG commodities. What is so exciting about Xpansiv is that it is a globally leading exchange in an emerging and fast-growing asset class.
The carbon market currently is worth $1.5 billion and is expected to grow to $485 billion by 2030 and $3.9 trillion by 2040. There is also expected to be a cumulative US$56 trillion-dollar investment in green infrastructure globally to meet net-zero by 2050. Xpansiv’s positioning as the leading exchange in ESG commodities will benefit from these investments and tailwinds. The company has developed a unique ecosystem with $10s of billions of registered assets and over 1000 companies. This facilitates the management of derivatives, benchmarks and data products.
Xpansiv has built a data framework to allow market participants to understand the environmental impact of activities such as mining, production, and refining. It links this data with IoT and big data tools and registers that information as a digital asset known as “digital feedstock”. This will allow the producers to sell both the fuels themselves as well as the record of the ESG attributes of those fuels. Revenue has been growing at a compounded annual growth rate of 80% over the past few years and is expected to grow to more than $100 million next year.