Zumo, the B2B digital assets infrastructure, has announced the launch of Oxygen, a world-first decarbonisation of digital assets solution for financial institutions prioritising ESG.
The launch comes one year after Zumo and its partner Zero Labs, a renewable-energy-as-a-service company building programmable decarbonisation technologies, were awarded a grant by Innovate UK, the UK’s national innovation agency, to fund research into the decarbonisation of digital assets, specifically finding practical ways in which wallets and platforms can scale the use of renewable energy.
Oxygen enables Zumo’s clients, including banks and asset managers, to provide ESG-aligned, future-proofed digital asset offerings to their customers.
The targeted solution combines the forecasting and calculation of crypto electricity consumption with standard industry data, and uses renewable energy procurement in the form of Renewable Energy Certificates (RECs) to ensure crypto or blockchain activities are transparently and verifiably powered by renewables.
This helps Zumo’s clients reduce the electricity-based Scope 3 emissions associated with their digital asset offerings and prove it.
The launch of Oxygen follows the successful completion of Zumo’s Zero Hero pilot project, a live trial to buy RECs to compensate for the electricity usage of Bitcoin bought via a direct-to-consumer crypto app, which is powered by Zumo’s infrastructure.
£1.5 million worth of Bitcoin was covered by Zero Hero REC purchases, with a total of 850 megawatt-hours (MWh) of electricity compensated via the programme – enough energy to drive an electric vehicle for over 2.6 million miles.
“The associated carbon footprint can be a huge elephant in the room when it comes to rolling out a digital asset product,” says Nick Jones, Co-Founder and CEO, Zumo.
“With Oxygen, the first solution of its type, we’re offering businesses practical ways to meet customer demand for digital assets whilst mitigating environmental challenges, and demonstrating positive, ESG-aligned action.”
“Oxygen empowers banks, asset managers, and other financial institutions to align their digital asset offering with their wider net zero strategy and make verifiable decarbonisation claims.”