Rialto Markets, a broker-dealer that specializes in online capital formation, has announced a partnership with Rubicon Carbon, LLC. Rialto will serve as the tech provider for the issuance of the assets.
According to a note from the firm, the partners will launch market-based products for carbon reduction.
Rubicon has been funded by TPG Rise Climate, TPG’s dedicated climate investing strategy, and TPG’s multi-sector impact investing strategy, The Rise Fund, to the tune of $300 million. Hank Paulson is the Executive Chairman of TPG Rise Climate and the former Secretary of the Treasury that saved the country from the Great Recession. Before that, Paulson was CEO of Goldman Sachs. TPG was co-founded by Bono of U2 fame.
As part of its launch, Rubicon has formed a coalition of corporate sustainability leaders to help guide the platform, including Aon, Bain & Company, Bank of America, Cushman & Wakefield, Dow Inc., General Electric Company, Genesys, Hertz, Honeywell, J.P. Morgan, JetBlue, Kirkland & Ellis LLP, McKinsey & Company, Momentive, SMBC, a member of SMBC Group, and TD Bank.
Rubicon’s initial product will be the Rubicon Carbon Tonne (RCT), which aims to provide enterprise customers access to proprietary sets of carbon credits. RCTs are backed by a Rubicon-owned inventory of carbon credits which, at Rubicon’s launch, amount to 20 million tonnes of CO2e.
Joel Steinmetz, COO and co-founder of Rialto Markets, said they are delighted to have signed a long term agreement with Rubicon.
“Rubicon Carbon will leverage Rialto Markets’ industry-leading primary markets technology and infrastructure to enable institutions to purchase a variety of carbon products.”
Tom Montag, CEO of Rubicon Carbon, said Rialto has created a solution to enable the purchase of RCTs as they bring innovation to the markets decarbonization tools.
“Rialto Markets actively seeks to participate in ESG initiatives, so we are excited and proud to be involved with Rubicon Carbon and its mission to drive decarbonization for enterprises across industries and around the world,” said Shari Noonan, CEO and co-founder of Rialto Markets.