New Hybrid Financial Instrument for De-risking Green Financing based on DLT.
Employing Distributed Ledger Technology /DLT/ we bridge the Green Financing Gap, speed up the achieving of 2030 Green Deal Goals and contribute towards Climate Resilience.
Problems
The Financial System cannot provide
viable de-risking strategies to facilitate
the volume of private investment
needed to reach the Green Deal goals.
Solution
Innovative Product provided to Financial Institutions
to effectively De-risk Investors,
guaranteeing Investment exclusively in Green Projects
through a bespoke Green Methodology.
Why Now
Address the worsening Climate Emergency
Tackle the persistence of GFG
Assist in achieving the 2030 Green Deal Goals
Speed up the digital transformation of Capital Markets.
Market
Deriveum creates a New Market Niche
of EUR 1 billion per year.
We also align the Financial Incentive
for all the Stake Holders.
Product
Direct Settlement Green Finance
De-Risking Instrument, utilising
Tokenised Cash Collateral with
Elements of Native Digital Asset.
Advantage
Enhanced investor protection
Shorter settlement cycle
Elimination of intermediaries.
Creating an Opportunity from the Problems
How we plan to help the Green Transformation
The Problems
The Financial System cannot provide viable de-risking strategies to facilitate the volume of private investment needed to reach the Green Deal goals. As the European Commission estimates in the COMMISSION STAFF WORKING DOCUMENT Identifying Europe’s recovery needs Accompanying the document; Europe’s moment: Repair and Prepare for the Next Generation SWD/2020/98 final the public funding available would cover just a fraction of the investment needed for the ambitious Green Goals to be achieved…
The funding gap for environmental
projects in Europe has been hard to fill,
despite abundant private liquidity.
The nature of private investment is
to focus on financial risks and
returns and revenue streams.
Greg Ford, Finance Watch
The Deriveum Solution
Innovative Product provided to Financial Institutions and Insurers (IFI) to effectively De-risk Investors,
guaranteeing Investment exclusively in Green Projects through a bespoke Green Methodology.
Why Now
Employing Distributed Ledger Technology /DLT/ we bridge the Green Financing Gap /GFG/, speed up the achieving of
2030 Green Deal Goals and contribute towards Climate Resilience.
The Market
Deriveum creates a New Market Niche of EUR 1 billion per year. SOM is based on the preliminary hard-cap that Deriveum would have considering our negotiations with the regulators from the Central Bank of Lithuania/European Central Bank. In this respect we will be creating a new market niche for Direct Settlement Green Finance De-Risking Instrument, Utilising DLT Tokenised Cash Collateral with Elements of Native Digital Asset.
Competitor Analysis
A shared characteristic of blended finance instruments is they are limited by the fact that their leverage is modest – in the lower single digits, and they are also limited in their scope, as they are applied piecemeal. Based on Convergence’s analysis of 157 historical blended funds and facilities, leverage ratios average at 1:5.
The Product
Direct Settlement Green Finance De-Risking Instrument, utilising Tokenised Cash Collateral with Elements of Native Digital Asset.
the Competitive Advantage
“The clearing and settlement landscape could change rapidly in response to tokenisation…DLT permits the automation of many actions via so-called smart contracts, ie protocols or code that self-execute when certain conditions are met… The use of smart contracts on a DL could also reduce the ability to strategically renege on contractual obligations such as settlement fails… DLs may shorten settlement cycles by streamlining reconciliation processes and reducingthe number of intermediaries. A shorter cycle lowers the exposure to replacement cost risk without the need for a CCP.”
Green Methodology
Stakeholder’s Benefits
The Team
Our team consist of commuted individuals with
diverse background in finance, law, economics,
IT, insurance and banking.
Meet us all
Deriveum is funded by Block.IS (Blockchain Innovation Spaces) Horizon 2020 research and innovation programme Project No. 824509, under the funding framework of the European Commission. 
