VivoPower, a sustainable energy solutions organisation, and KWeather, a climate risk management solutions company, have signed an exclusive heads of agreement deal that will see both firms collaborate to build the world’s first WeatherCoin, a weather derivative token for climate risk management.According to the announcement, VivoPower, through its Vivo Federation division, plans to invest US$5 million in exchange for a ~20% stake in KWeather.KWeather reportedly intends to utilize the funds to acquire shares of VivoPower, thereby becoming the first and only organisation in South Korea to offer exposure to XRP and potential Ripple Labs.As mentioned, the companies plan to launch the world’s first WeatherCoin for applications including climate risk management, which marks the latest move to harness crypto and tokenisation technologies to construct risk transfer instruments.

Being a weather derivative instrument, we can also assume that these will likely involve either parametric or weather index trigger contracts.For context, VivoPower recently launched Vivo Federation, its global digital asset and blockchain solutions division, to extend and replicate its Digital Asset Treasury (DAT) strategy beyond the United States.The division is also pursuing strategic acquisitions of public companies outside the US in order to build a global network of entities aligned with VivoPower’s vision for decentralised, impact-driven finance.

Through these acquisitions, Vivo Federation is aiming to develop blockchain-based treasury, payment, and tokenization platforms that support clean energy, digital infrastructure, and sustainability projects worldwide.It’s important to highlight that the partnership is subject to both VivoPower and KWeather entering into a definitive agreement and customary closing conditions.Dong Sik Kim, CEO of KWeather, commented: “We are honored to partner with VivoPower to launch our XRP-focused digital asset and blockchain division.

We also look forward to welcoming Adam Traidman, former Ripple Labs board member, to our board of directors.With this strategy, we would be the first and only publicly listed company in South Korea to offer shareholders the opportunity to gain exposure to XRP and potentially Ripple Labs shares.Importantly, Mr.

Kevin Chin and I share a common vision with regard to blockchain applications and tokenization.” Kevin Chin, Executive Chairman of VivoPower, said: “We are delighted to be entering into this partnership with KWeather and look forward to being substantial shareholders and contributing value via our two board seats.South Korea is a strategically important market for Vivo Federation, given that the South Korean people are the largest holders of XRP by number and value in the world.“Aside from Mr.

Kim’s strategic acuity, what was very appealing to us about KWeather is its rich data set accumulated over many decades in relation to weather and air.Beyond the XRP-focused digital asset reserve, we are looking forward to building the WeatherCoin token together as a tool for risk management, amongst other use cases.”.All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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