KlimaDAO has been at the forefront of revolutionizing the voluntary carbon market, facilitating over $4 billion in total transaction volume. With a vision of scaling the carbon credit ecosystem into a $10 trillion+ market, KlimaDAO has continuously innovated to make real-world asset (RWA)-backed carbon credits more accessible, transparent, and liquid.
However, before adopting Axelar’s Interchain Token Service (ITS), KlimaDAO faced a common challenge in the blockchain space: fragmentation. Carbon credits were isolated within specific ecosystems, limiting liquidity, accessibility, and adoption across different blockchains. This restricted market growth and made it difficult for institutions and individuals to participate seamlessly.
Enter Axelar ITS—a solution that unlocks automated cross-chain accessibility, allowing KlimaDAO’s carbon credits and governance tokens to move seamlessly between networks without compromising security, compliance, or utility.
Why KlimaDAO Chose Axelar ITS
The success of KlimaDAO’s ecosystem depends on cross-chain liquidity, security, and real-world backing of its carbon credits. By leveraging Axelar’s Interchain Token Service, KlimaDAO gains the ability to:
• Expand Carbon Credit Accessibility – KlimaDAO can now scale its offerings beyond a single blockchain, making tokenized carbon credits available where users and institutions need them.
• Maintain 1:1 Backing – With ITS, KlimaDAO ensures that every KLIMA token remains backed by verified real-world carbon credits, preserving integrity and trust in the ecosystem.
• Enable Institutional-Grade Transparency – KlimaDAO aligns with corporate sustainability mandates by providing a secure, auditable, and decentralized framework for carbon credit trading and retirement.
• Enhance Market Access Without Sacrificing Security – ITS ensures safe, seamless cross-chain transactions, avoiding vulnerabilities found in traditional bridging mechanisms.
Expanding Liquidity & Market Access
KlimaDAO’s integration with Axelar ITS has already demonstrated impressive results:
• 12,948 new token holders since expanding to Base using ITS
• $18M+ in liquidity emissions directed to KlimaDAO pools since April 2024
• $2-4M in trading volume per epoch, driving greater engagement and adoption
• 7th largest holder of veAERO, leveraging its position to support environmental asset infrastructure and deepen liquidity pools
This successful deployment means that KlimaDAO can now serve both traditional corporate sustainability demand (via Carbonmark) and DeFi market participants (via Aerodrome on Base)—all while preserving governance and carbon offset functionalities.
Unlocking the Power of Cross-Chain Markets
Before ITS, KlimaDAO’s tokenized carbon credit markets were isolated. Now, thanks to Axelar, KlimaDAO can move beyond chain-specific liquidity barriers and enable seamless, secure cross-chain transactions.
With this new interoperability, KlimaDAO can:
• Support traditional corporate carbon credit offsets through Carbonmark on Polygon.
• Enhance DeFi participation with KLIMA and BCT trading pools on Base.
• Enable seamless liquidity movement between chains, ensuring users always have access to the best possible markets.
• Deploy specialized tokens like $CHAR across multiple chains, including Base and Celo.
By making tokenized carbon credits available across the entire blockchain ecosystem, KlimaDAO sets a new standard for how RWA-backed assets should function in an interchain world.
The Future of Carbon Markets is Cross-Chain
With Axelar ITS powering cross-chain transactions, KlimaDAO removes friction, unlocks liquidity, and creates a more unified, accessible voluntary carbon market. This means a future where:
Institutions can engage in sustainability initiatives across ecosystems
Retail users can seamlessly participate in DeFi-powered carbon markets
RWAs are valued based on their impact and utility, not limited by chain-specific constraints
With ITS, KlimaDAO is leading the charge in making tokenized climate action scalable, accessible, and interoperable.