Definition ∞ A green bond is a type of debt security issued to finance projects with positive environmental or climate benefits. In the context of digital assets, while traditionally part of conventional finance, the concept could theoretically extend to tokenized bonds issued on a blockchain that fund environmentally sustainable initiatives. These bonds provide capital for projects like renewable energy, energy efficiency, or sustainable waste management, with proceeds specifically earmarked for such purposes. The transparency of blockchain could potentially enhance the reporting and verification of how funds are utilized.
Context ∞ Discussions around green bonds in crypto news usually relate to the broader convergence of traditional finance and blockchain technology, or efforts to address the environmental concerns associated with certain cryptocurrencies. The development of tokenized green bonds could offer new avenues for sustainable financing within a transparent and immutable digital framework. This area represents a potential future application where digital assets meet environmental, social, and governance objectives.
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