Xpansiv

KYCO: Know Your Company

Reveal Profile

10 December 2025

1) Overview of the Company

Xpansiv Limited is a privately held global market infrastructure provider founded in 2016 and headquartered in New York, with offices in Sydney, London, Houston, Milan, and Bendigo. The company operates the world’s largest integrated, open, and neutral market infrastructure for the global energy transition, providing comprehensive end-to-end technology platforms that cover the entire lifecycle of environmental commodities.

Formed in 2019 through the merger of CBL (founded 2009) and Xpansiv (founded 2016), the company connects diverse markets and participants worldwide, playing a pivotal role in scaling the energy transition. Xpansiv operates as an Exempt Reporting Adviser (ERA) with the SEC and maintains over 200-500 employees across multiple international locations.

The company’s strategic focus centers on environmental commodities including carbon credits, renewable energy certificates (RECs), water entitlements, and digital fuels. Revenue diversification is evident across business segments, with renewable energy certificates accounting for 58% of total revenues in 2024, compared to 26% from carbon and 16% from fuels and water products.

Xpansiv has secured over $700 million in total funding across multiple rounds, with strategic investors including Aramco Ventures, Blackstone Group, Bank of America, Goldman Sachs, BP Ventures, S&P Global Ventures, Macquarie Group, and Commonwealth Bank of Australia. The company has pursued an active acquisition strategy, completing over 11 acquisitions and strategic investments in recent years, with the most recent being the November 2025 acquisition of Evident Group to strengthen its global renewable energy markets position.

The company operates the CBL spot exchange, which maintains over 90% global market share of exchange-traded and settled carbon credits, and manages the world’s largest registry platform supporting over 80% of global carbon credits and 60% of North American RECs through its meta-registry and portfolio management system. Xpansiv’s Managed Solutions business surpassed 100,000 customers in February 2024, representing over 1.5GW of renewable energy capability, and has eclipsed the $1 billion total customer payout milestone since its establishment a decade ago.

2) History

Xpansiv’s origins trace back to 2016 when Joe Madden and Jeff Cohen co-founded the company in San Francisco with a vision to revolutionize commodity markets through digital transformation. The company emerged from recognition that traditional commodity markets were designed for a resource-rich, data-poor world, while modern markets required transparency and data-driven decision making in an increasingly resource-constrained environment.

The company’s foundational strategy centered on transforming primary production data into Digital Feedstock™, a new data format combining data science, cryptography, and distributed-ledger technologies to deliver authenticated information to global markets. This platform enabled the creation of “Intelligent Commodities™” – digital assets that could be transacted based on comprehensive information linked to source data, marking a paradigm shift in how commodities could be valued and traded.

A transformative milestone occurred in August 2019 when Xpansiv completed its merger with CBL Markets, founded in 2009 by Ben Stuart and Nathan Rockliff. This merger created the world’s first data-driven commodity marketplace, combining CBL’s leading spot exchange platform with Xpansiv’s revolutionary data refinery and next-generation technology platform. The merger brought together complementary teams to create a marketplace powered by Digital Feedstock™, positioning the combined entity at the forefront of the Digital Commodity Ecosystem™.

Xpansiv’s growth trajectory accelerated through a strategic funding progression, beginning with a $10 million Series A round in January 2019 led by BP Ventures, Avista Development, S&P Global, and Energy Innovation Capital. This was followed by an additional $25 million in strategic funding in January 2020 from BP Ventures, Oxy Low Carbon Ventures (a subsidiary of Occidental), and Macquarie Group Limited. The company completed a significantly oversubscribed $100 million capital raise in September 2021, initially targeting $50 million but increasing to accommodate substantial investor demand.

The company pursued an aggressive expansion strategy through strategic acquisitions, completing over 11 acquisitions and investments between 2019 and 2025. Notable acquisitions included OTX in 2021, SRECTrade in November 2021 to scale renewable energy business, APX in August 2022 to enhance registry infrastructure, and Evolution Markets in 2022 for $125 million to expand global market infrastructure. The most recent major acquisition was Evident Group in November 2025, strengthening Xpansiv’s position in global renewable energy markets.

A significant milestone occurred in July 2022 when Blackstone Energy Partners committed $400 million to lead a strategic investment, bringing Xpansiv’s valuation to $1.2 billion and establishing it as a unicorn company. Additional strategic investors joined subsequently, including Aramco Ventures, Bank of America, and Goldman Sachs, bringing total funding to over $700 million.

The company expanded its global footprint significantly, establishing operations across multiple continents with offices in New York, Sydney, London, Houston, Milan, and Bendigo. Xpansiv’s registry software grew to support more than 80% of global carbon credits and 60% of North American renewable energy certificates, while its CBL spot exchange achieved over 90% global market share of exchange-traded and settled carbon credits by 2024.

3) Key Executives

John Melby has served as Chief Executive Officer at Xpansiv since October 2023. Melby brings over two decades of experience in energy and environmental markets, with particular expertise in renewable energy, carbon, and power markets. Prior to becoming CEO, he was President and Chief Operating Officer at Xpansiv. His career includes serving as co-founder of Noble4 Advisors and the Melby Group, where he advised governments, energy companies, financial institutions, and exchanges. He previously held roles as Managing Director of North American Markets for Green Exchange, which was acquired by the Chicago Mercantile Exchange, and President and CEO of APX, where he led the company to become the leading infrastructure platform for renewable energy markets.

Frank McAnally was appointed Chief Financial Officer in October 2023, bringing nearly 20 years of senior finance and operational experience at financial technology companies. Prior to joining Xpansiv, McAnally served as President and CFO at Nymbus, a banking software provider. His career began at SunGard, where he rose to a senior financial role and helped execute the company’s $9.1 billion sale to FIS in 2015. Following FIS, he served as Executive Vice President and Chief Financial Officer at healthcare payments processor InstaMed, where he led the company through its sale to JP Morgan Chase in 2019.

Paul Sestili serves as Chief Operating Officer at Xpansiv, a role he assumed after joining the company in 2020. He has held various executive roles within the company including business line management and Chief of Staff before becoming COO. Sestili brings extensive experience in building and scaling technology companies, with a background as a programmer and trained engineer. He spent 20 years in venture capital, funding, operating, managing, and successfully exiting technology start-ups including software, SaaS, security, and data companies. Earlier in his career, he developed software at the National Bureau of Standards and designed technology to improve oil refining processes.

Michael Goldstein has served as General Counsel since 2022, bringing over 30 years of experience in financial services and technology sectors. Before joining Xpansiv, Goldstein was Chief Legal Officer and General Counsel of Digital Asset, a distributed ledger software technology developer. Between 1993 and 2017, he held executive positions with global commodities merchants, including General Counsel and Co-CEO of RBS Sempra Commodities, Co-CEO of Societé Generale Energy, General Counsel of Castleton Commodities, and Head of Policy & Strategy at JPMorgan Commodities. He also worked as a corporate associate at Paul, Weiss, Rifkind, Wharton & Garrison and at Milbank, Tweed, Hadley & McCloy.

Erika Crandall serves as Chief Risk Officer, appointed in April 2022. She leads Xpansiv’s risk, compliance, and information security teams. Crandall developed her expertise through various roles in traditional and non-traditional financial firms, including as head of risk at Reserve Trust, as well as senior roles at BNP Paribas / Bank of the West, Bridgewater Associates, Wells Fargo, and Wachovia. Her expertise extends across enterprise and operational risk management, including technology and information risk, cyber security, regulatory compliance, privacy, and change management.

Seshadri Sundaram serves as Chief Technology Officer, bringing over 25 years of experience in capital markets. He previously served as Managing Director of Engineering and Execution at CME Group Inc. Sundaram has extensive experience in engineering trading, clearing, and risk management systems, with a background in establishing large and successful global offshoring and outsourcing centers focused on 24×7 delivery and support. He leads Xpansiv’s technology team in developing essential product solutions and supporting strategic initiatives across the global Xpansiv groups.

Henrik Hasselknippe serves as Chief Platform Officer, leading Xpansiv’s commercial operations. With more than two decades of experience in environmental and energy markets, Hasselknippe previously served as Executive Director for CME Group, leading the company’s Corporate Development in EMEA and running CME’s international energy business in London. He also served as Managing Director for GreenX, an environmental markets exchange owned by leading global investment banks, brokers, and trading companies. He began his career as a researcher and consultant in international climate policy and emissions trading markets, including several years as global head of carbon trading analytics and research for Point Carbon.

Nathan Rockliff serves as Chief Strategy Officer, bringing more than 15 years of experience as a senior executive in environmental commodity markets including carbon, renewable energy, and water. As co-founder of CBL in 2009, Rockliff played an instrumental role in developing, executing, and managing the exchange business. He leads Xpansiv’s expansion into existing and new markets through mergers and acquisitions and the development of key strategic partnerships. Rockliff was previously a board member of CBL Markets and H2OX and is observer to the board of APX. He was formally admitted to practice as an attorney in both Australia and the UK.

Ben Stuart serves as Chief Commercial Officer, bringing more than a decade’s experience in environmental markets. He co-founded CBL in 2009 and designed and implemented the CBL product offering across environmental, energy, and soft commodity products. Stuart was part of the joint government initiative that established the Australian water exchange, H2OX. He coordinated development of the first Australian gas pipeline auctions of storage and physical gas and oversaw contract design and implementation for the first exchange traded differentiated natural gas contracts in 2019. Prior to CBL, Stuart was a broker for Tullett Prebon in London for the EU ETS and UK Power Markets.

Karen Miller was appointed Chief People Officer in 2024, bringing more than 25 years of experience in human resources and organization development. Her expertise includes employee engagement, performance improvement, talent management, coaching, cultural transformation, process optimization, and organizational redesign. Miller joined Xpansiv from Pond5, a video content marketplace acquired by Shutterstock in 2022, where she served as Chief People Officer. Previously, she was Senior Vice President of People at GrubHub and contributed to organization development efforts at EY.

Janet Mihalyfi was promoted to President of Managed Solutions, previously holding the position of Senior Vice President of Renewables at the Managed Solutions division. She is responsible for guiding the strategic growth of Managed Solutions and the business unit’s ongoing operations, and is a member of Xpansiv’s Management Team. Mihalyfi joined Xpansiv with the company’s acquisition of SRECTrade in 2021, where the Managed Solutions division was formed. The division provides full service management and transaction solutions for renewable energy, managing more than 1.5GW of renewable assets across the United States.

4) Ownership

Xpansiv Limited operates as a privately held unlisted public company incorporated in Australia with substantial strategic investor backing across multiple funding rounds totaling over $700 million. The company’s current ownership structure reflects a diverse mix of institutional investors, strategic corporate investors, and energy transition-focused investment vehicles that have participated in its growth trajectory since 2016.

The most recent ownership evolution occurred through a strategic capital raise led by Aramco Ventures in 2024, with participation from existing investors including Blackstone Group, Bank of America, Goldman Sachs, Macquarie Group Ltd., S&P Global Ventures, Aware Super, BP Ventures, Commonwealth Bank of Australia, and the Australian Clean Energy Finance Corporation. This funding round reinforced the company’s strategic positioning while expanding its investor base to include one of the world’s leading energy companies through Aramco’s sustainability-focused investment arm.

Blackstone Energy Partners represents the largest institutional stakeholder following its transformational $400 million strategic investment in July 2022, which established Xpansiv’s unicorn status at a $1.2 billion valuation. This investment provided Blackstone with significant ownership influence and enabled subsequent strategic acquisitions, including Evolution Markets for $125 million in 2023. The Blackstone relationship extends beyond capital provision, offering strategic guidance and market access that has accelerated Xpansiv’s consolidation strategy in environmental commodities markets.

Strategic corporate investors maintain significant positions through multiple funding rounds spanning 2019 to 2024. BP Ventures has been a consistent investor since the company’s $10 million Series A round in January 2019, participating in subsequent rounds including the $25 million Series B in 2020 and the $125 million Series D follow-up in January 2023. S&P Global similarly maintains a strategic position established in 2019 and reinforced in 2023, reflecting the company’s data and analytics focus.

Financial institutions Bank of America and Goldman Sachs joined as strategic investors in the January 2023 $125 million Series D extension, bringing substantial financial services expertise and market access. Their participation reflects growing institutional recognition of environmental commodities as a distinct asset class requiring specialized infrastructure and market-making capabilities.

Australian institutional investors maintain meaningful positions through the company’s incorporation jurisdiction and strategic importance to the Asia-Pacific energy transition. Commonwealth Bank of Australia, the Australian Clean Energy Finance Corporation, Aware Super, and Wilson Asset Management participated in the oversubscribed $100 million Series C round in September 2021, demonstrating domestic institutional support for the company’s global expansion strategy.

The ownership structure includes founding team equity positions, with co-founders Joe Madden, Jeff Cohen, and Nathan Rockliff (through the CBL merger) retaining strategic stakes that ensure management alignment with long-term value creation. The 2019 merger between Xpansiv (founded 2016) and CBL Markets (founded 2009) consolidated ownership under the current structure, combining complementary technology platforms and market access capabilities.

Board composition reflects the strategic investor base, with Lawrence Leibowitz serving as Chairman and Jack Klinck Jr. as Vice Chairman, both bringing extensive financial markets expertise. Andrea Remyn Stone, a market data and financial technology veteran, joined as a board director in 2024, reinforcing the company’s data-driven strategic focus. The board structure provides oversight across the company’s diverse business units spanning carbon credits, renewable energy certificates, registry infrastructure, and brokerage services.

The ownership evolution demonstrates strategic capital allocation toward market infrastructure consolidation, with over 11 acquisitions and strategic investments completed since 2019. The most recent acquisition activity includes the November 2025 purchase of Evident Group, strengthening Xpansiv’s position in global renewable energy certificate markets and expanding its registry network to over 300 GW of capacity serving more than 4,000 participating companies.

5) Financial Position

Xpansiv demonstrates robust operational health through significant valuation growth and diversified revenue streams across environmental commodities markets. The company achieved unicorn status in July 2022 when Blackstone Energy Partners led a $400 million strategic investment, establishing a $1.2 billion valuation from its previous position as a high-growth private company. This represented a substantial appreciation from earlier funding rounds, including the $100 million Series C in September 2021 and the $125 million Series D extension in January 2023.

Revenue diversification has strengthened significantly, with the company’s 2024 annual filing showing renewable energy certificates accounting for 58% of total revenues, compared to 26% from carbon products and 16% from fuels and water products. This shift reflects strategic positioning toward higher-growth renewable energy markets driven by data center demand and corporate sustainability commitments. Trading volume growth demonstrates operational momentum, with carbon volume on the CBL exchange rising 288% in 2021 to exceed 121.5 million metric tons, while the platform’s market share doubled to 36% based on volume and exceeded 41% based on notional value.

The company’s financial trajectory shows substantial revenue expansion, with 2023 revenue reaching approximately $118 million compared to previous periods, supported by a compound annual growth rate of 165% since 2020. Operational efficiency improvements are evident through cost management initiatives focused on integration synergies from multiple acquisitions, including Evolution Markets, APX, and SRECTrade. The company has successfully reduced operational losses to approximately one-quarter of 2023 levels while increasing revenue by 12% in 2024.

Liquidity position remains strong through multiple funding sources totaling over $700 million across eight funding rounds since 2016. The most recent capital raise led by Aramco Ventures in 2024 included participation from existing investors Blackstone Group, Bank of America, Goldman Sachs, and Commonwealth Bank of Australia, demonstrating continued institutional confidence. Strategic capital allocation is evident through over 11 acquisitions and investments since 2019, with the November 2025 acquisition of Evident Group for an undisclosed amount representing the latest expansion into global renewable energy markets.

Asset base expansion reflects operational scale, with the company’s meta-registry and portfolio management system managing over 1 billion asset transfers annually across 13 integrated global registries. The platform processes more than 80% of global carbon credits and 60% of North American renewable energy certificates, representing substantial infrastructure network effects and barriers to entry. The Managed Solutions division surpassed 100,000 customers in 2024, representing over 1.5GW of renewable energy capability and eclipsing the $1 billion total customer payout milestone since establishment.

Market activity indicators demonstrate platform utilization growth, with nearly 2 billion metric tons of carbon and more than 36 million megawatt hours of renewable energy transacted by Xpansiv market intermediaries in 2023. CBL spot exchange maintains over 90% global market share of exchange-traded and settled carbon credits, while renewable energy certificate trading reached $27 million in notional value during January 2025, representing a monthly record.

Capital efficiency metrics show strategic resource deployment through acquisition-driven growth rather than organic expansion alone. The Evolution Markets acquisition for $125 million in 2023 brought a global client base of over 2,000 customers and integration opportunities across Xpansiv’s technology infrastructure. Geographic expansion through acquisitions provides revenue diversification across North America, Europe, Asia-Pacific, and emerging markets including partnerships with Korea Exchange and NH Investment & Securities.

Cash flow generation capabilities are supported by transaction-based revenue models across exchange trading, registry services, and portfolio management platforms. The company’s SaaS-based revenue streams provide recurring income from over 100,000 managed solutions customers, while trading volumes create variable revenue tied to environmental commodities market growth. Strategic partnerships with CME Group for futures contracts and S&P Global for pricing assessments provide additional revenue diversification and market infrastructure value.

6) Market Position

Xpansiv maintains a dominant position in global environmental commodities markets through its integrated infrastructure that spans carbon credits, renewable energy certificates, water rights, and digital fuels. The company operates the CBL spot exchange, which commands over 90% global market share of exchange-traded and settled carbon credits, establishing it as the world’s largest marketplace for voluntary carbon market transactions. This market leadership extends beyond trading volume, with CBL capturing over 36% of the voluntary carbon market by volume and exceeding 41% based on notional value in 2021, representing a doubling of market share from 17% in 2020.

The company’s registry infrastructure demonstrates significant network effects, with Xpansiv’s software supporting more than 80% of global carbon credits and 60% of North American renewable energy certificates through its meta-registry and portfolio management system. The platform processes over one billion asset transfers annually across 13 integrated global registries, including partnerships with major standards bodies such as Verra, Climate Action Reserve, American Carbon Registry, Gold Standard, and EcoRegistry. This comprehensive registry network creates substantial barriers to entry for competitors while providing customers with unified access to environmental commodities across multiple jurisdictions.

Xpansiv’s competitive differentiation centers on its end-to-end technology platform that covers the entire lifecycle of environmental commodities from issuance to retirement. Unlike fragmented competitors that focus on single components, Xpansiv integrates trading, post-trade settlement, registry infrastructure, portfolio management, and market data services into one digital ecosystem. The company’s Xpansiv Connect platform enables seamless API-based integration with third-party solutions, supporting over 100,000 customers in the Managed Solutions division representing more than 1.5GW of renewable energy capability.

Strategic partnerships reinforce Xpansiv’s market position through relationships with established financial infrastructure providers. The company maintains collaboration agreements with CME Group for futures contracts, S&P Global Platts for pricing assessments, and partnerships with major exchanges including Korea Exchange, Johannesburg Stock Exchange Ventures, and the International Air Transport Association for the Aviation Carbon Exchange. Recent partnerships with NH Investment & Securities and Enechain Corporation expand market access in Asia, while the collaboration with the Regional Voluntary Carbon Market Company in Saudi Arabia demonstrates global expansion capabilities.

Customer concentration spans corporate sustainability teams, project developers, trading firms, financial institutions, and government entities across multiple sectors. The platform serves over 2,000 customers through the Evolution Markets acquisition, including many of the world’s largest energy firms, corporations, utilities, and financial institutions. Active trading participants on the CBL exchange reached 127 discrete entities in Q2 2023, representing a 21% year-over-year increase and demonstrating growing market adoption.

Innovation capabilities distinguish Xpansiv through its Digital Feedstock technology that transforms production data into tradable environmental commodities with verifiable attributes. The company launched the first standardized contracts in the voluntary carbon market with its Global Emissions Offset (GEO) suite, including the N-GEO for nature-based credits and C-GEO for technology-based credits. These standardized instruments enable benchmark pricing and futures market development, with CME Group’s CBL emissions futures complex transacting 3.8 million tons in November 2024.

Technology infrastructure investments focus on blockchain integration through partnerships with Digital Asset’s Canton Network and the SMART Protocol to enable tokenized environmental asset infrastructure. The company’s platform utilizes modern fintech architecture with SOC2 certification, supporting institutional-grade security requirements for large banks, investment firms, and government entities. Recent launches include hourly renewable energy certificate tracking capabilities and Environmental Fuel and Energy Credits (EFEC) trading to address data center demand for granular clean energy verification.

Geographic expansion demonstrates global market penetration across North America, Europe, Asia-Pacific, and emerging markets. The November 2025 acquisition of Evident Group creates a unified renewable energy certificate network with over 300 GW of capacity serving more than 4,000 participating companies across 60+ countries. This acquisition strengthens Xpansiv’s position in international renewable energy markets where Evident previously managed over 95% of the voluntary renewable energy certificate market outside Europe and North America.

Competitive advantages include first-mover advantage in standardized carbon contracts, comprehensive regulatory compliance across multiple jurisdictions, and proprietary technology that enables interoperability between different environmental commodity registries. The company’s market data business provides transparency through daily pricing assessments used by leading price-reporting agencies, while its auction platform enables project developers to maximize returns through electronic auction services connected to the largest carbon network globally.

7) Legal Claims and Actions

The legal history review for Xpansiv and its subsidiaries reveals limited significant litigation, with the primary notable legal proceeding involving Evolution Markets, Inc., a subsidiary acquired by Xpansiv in 2023.

In May 2009, Evolution Markets, Inc. (EvoMarkets) successfully obtained a preliminary injunction against former employee Alexandra Penny in the United States District Court for the Southern District of New York. The case arose when Penny unilaterally declared constructive discharge from her employment and immediately joined competitor ICAP Capital Markets, LLC, allegedly violating multiple restrictive covenants in her employment agreement.

The court proceedings centered on EvoMarkets’ allegations that Penny breached her employment agreement’s non-compete, non-solicitation, non-disclosure, and non-hire clauses by working for a direct competitor, disclosing confidential information, soliciting EvoMarkets’ clients, and potentially hiring away other employees. The court found EvoMarkets demonstrated a likelihood of success on the merits, irreparable injury, and that the balance of equities favored granting the injunction.

The preliminary injunction imposed specific restrictions on Penny’s activities, including prohibition from working for ICAP or similar businesses until August 25, 2009, disclosure of confidential information, solicitation of EvoMarkets’ clients until November 25, 2009, and hiring EvoMarkets’ employees until November 5, 2009. As part of the court order, EvoMarkets was required to continue paying Penny’s base salary during the restricted period and post a $100,000 undertaking to secure the injunction.

This employment-related litigation predated Xpansiv’s acquisition of Evolution Markets by approximately 14 years and involved standard employment contract enforcement rather than regulatory violations or operational misconduct. The successful outcome for Evolution Markets demonstrated the company’s ability to protect its business interests and confidential information through legal proceedings when necessary.

No additional significant legal claims, regulatory actions, or compliance violations were identified involving Xpansiv Limited or its other subsidiaries, including CBL Markets, APX Inc., SRECTrade Inc., Project OTX Limited, Evident Group Limited, or other affiliated entities across their operating jurisdictions in the United States, Australia, United Kingdom, and other international markets where the company maintains operations.

8) Recent Media

Xpansiv has received significant media coverage centered on strategic fundraising, acquisitions, partnerships, and evolving market dynamics. In May 2024, the company finalized a new capital raise led by Aramco Ventures, with continued participation from existing investors including Blackstone Group, Bank of America, and Goldman Sachs. This followed an earlier oversubscribed $125 million capital raise closed in January 2023, which first brought on Bank of America and Goldman Sachs as strategic investors. Financial filings in May 2025 indicated a 12% revenue increase in 2024, with operational losses reduced to nearly a quarter of 2023 levels. The reports also highlighted a strategic shift in revenue, with renewable energy certificates (RECs) and fuels comprising a larger share of income compared to carbon. In May 2023, media reported that Xpansiv had doubled its revenue and halved its losses in 2022 and had dispelled auditor concerns regarding its financial fitness.

The company continued its acquisition-focused growth strategy, announcing in late 2025 the full acquisition of Evident Group Limited, a global registry operator and certification body. The move united Evident’s I-REC registry with Xpansiv’s North American Renewables Registry and other platforms, creating a global REC network with over 300 GW of capacity. This followed a minority investment in Evident announced in January 2024. The acquisition of transaction advisory firm Evolution Markets was completed in conjunction with the January 2023 capital raise.

Xpansiv announced numerous strategic partnerships to expand its global infrastructure footprint. In October 2025, New York State selected Xpansiv to provide the technology for its new greenhouse gas emissions reporting platform. That same month, Xpansiv partnered with Constellation to launch trading of emission-free energy certificates (EFECs) on its CBL exchange. In September 2025, the company entered into memoranda of understanding with Korea Exchange (KRX) to support its new carbon credit market and with NH Investment & Securities (NHIS) to expand market access for Korean clients. In April 2024, Saudi Arabia’s Regional Voluntary Carbon Market Company (RVCMC) selected Xpansiv to provide the technology for its carbon credit exchange. The company also launched its Xpansiv Connect open-access infrastructure platform in May 2024, with launch partners including Trafigura, MSCI Carbon Markets, and Patch.

Product innovation and market performance have been prominent in media reports. On July 23, 2024, Xpansiv’s CBL exchange launched the first standardized contracts aligned with the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP). In January 2025, the CBL exchange set a monthly record for the highest notional value of RECs traded, at over $27 million. This followed a record-setting day in December 2023, when the CBL exchange traded 2.1 million tons of carbon credits, its highest daily volume for the year, driven by year-end corporate buying. However, a January 2024 report noted a slowdown in carbon market momentum on the CBL exchange and associated CME Group futures.

Several key executive and board changes were reported between 2023 and 2025. In October 2023, Frank McAnally was appointed Chief Financial Officer. That same month, Rene Velasquez, the managing director of advisory firm Carbon Financial Services and a nine-year veteran of the company, announced his departure, though he remains a strategic advisor and shareholder. In 2024, the company appointed market data executive Andrea Remyn Stone to its Board of Directors. To bolster its go-to-market strategy, Xpansiv hired Kristina Schaefer-Williams as Senior Vice President of Sales and Michael Applebaum as Vice President of Marketing in September 2025.

In the legal and regulatory sphere, a lawsuit, Smith v. Xpansiv Data Systems, Inc., was filed in the U.S. District Court for the Western District of Texas in September 2024. Court records classify the case as an employment-related civil rights matter concerning the Americans with Disabilities Act. While not directly involving Xpansiv, a significant market event occurred in October 2024 when the U.S. Commodity Futures Trading Commission (CFTC) brought its first-ever fraud enforcement action in the voluntary carbon credit market against a project developer for misrepresenting emissions reductions. This action has increased the focus on integrity and regulatory oversight in the markets Xpansiv serves. More directly, in July 2025, a New York judge dismissed a case against CME Group concerning the CORSIA-eligibility of GEO futures, a derivative product based on Xpansiv’s CBL contracts.

Xpansiv received industry recognition for its market role. The company was the runner-up for “Best market innovation” in the Environmental Finance Voluntary Carbon Market Rankings for 2024, while its subsidiary Evolution Markets was named “Best broker.” In May 2023, Xpansiv received the “One to watch award” at the Energy Risk Awards for bringing transparency and liquidity to the voluntary carbon market.

9) Strengths

Leading Market Position Across Environmental Commodities

Xpansiv maintains dominant market positions across multiple environmental commodity segments, establishing substantial competitive moats through network effects and operational scale. The company’s CBL spot exchange commands over 90% global market share of exchange-traded and settled carbon credits, while its registry software supports more than 80% of global carbon credits and 60% of North American renewable energy certificates. This market leadership translates to processing over one billion asset transfers annually across 13 integrated global registries, creating substantial barriers to entry for competitors and providing customers with unmatched access to environmental commodities markets.

Comprehensive End-to-End Technology Platform

The company operates an integrated technology ecosystem that covers the entire lifecycle of environmental commodities from issuance to retirement, differentiating it from fragmented competitors focused on single components. Xpansiv’s platform integrates trading, post-trade settlement, registry infrastructure, portfolio management, and market data services into one digital ecosystem through its Xpansiv Connect open-access infrastructure. The platform’s SOC2 certification since 2018 demonstrates institutional-grade security standards, while its modern fintech architecture supports seamless API-based integration with third-party solutions, enabling customers to manage environmental assets across multiple registries from a single interface.

Strategic Investor Backing and Financial Resources

Xpansiv benefits from over $700 million in total funding from strategic investors including Blackstone Group, Bank of America, Goldman Sachs, Aramco Ventures, BP Ventures, S&P Global Ventures, Macquarie Group, and Commonwealth Bank of Australia. This diverse investor base provides not only capital resources but also strategic guidance, market access, and credibility that enhances the company’s ability to pursue acquisitions and geographic expansion. The $400 million strategic investment from Blackstone Energy Partners in July 2022 established Xpansiv’s unicorn status at a $1.2 billion valuation, providing substantial financial flexibility for strategic initiatives.

Global Registry Infrastructure and Regulatory Expertise

The company’s registry infrastructure represents over 20 years of experience building and operating environmental commodity tracking systems, providing unmatched expertise in managing complex regulatory requirements across multiple jurisdictions. Xpansiv’s platforms support partnerships with major standards bodies including Verra, Climate Action Reserve, American Carbon Registry, Gold Standard, and EcoRegistry, while maintaining compliance with diverse regulatory frameworks spanning the United States, Australia, United Kingdom, and other international markets. The company’s role as technology provider for three of the four largest voluntary carbon market standards creates significant switching costs and regulatory barriers for competitors.

Innovation Leadership in Market Standardization

Xpansiv pioneered standardized carbon contracts through its Global Emissions Offset (GEO) suite, including N-GEO for nature-based credits and C-GEO for technology-based credits, enabling benchmark pricing and futures market development. These standardized instruments address a critical market need for transparency and liquidity, with CME Group’s CBL emissions futures complex transacting 3.8 million tons in November 2024. The company’s Standard Instruments Program establishes governance frameworks that bring commodity market discipline to environmental assets, creating standardized criteria for quality and performance that enhances market confidence and enables efficient price discovery.

Diversified Revenue Streams and Customer Base

The company demonstrates strong revenue diversification across environmental commodities segments, with renewable energy certificates accounting for 58% of total revenues in 2024, compared to 26% from carbon and 16% from fuels and water products. This diversification strategy reduces concentration risk while positioning Xpansiv to benefit from growth across multiple energy transition markets. The company’s customer base spans over 100,000 managed solutions customers representing more than 1.5GW of renewable energy capability, plus over 2,000 Evolution Markets customers including many of the world’s largest energy firms, corporations, utilities, and financial institutions.

Strategic Partnership Network and Market Access

Xpansiv leverages strategic partnerships with established financial infrastructure providers to enhance market reach and credibility. Key partnerships include collaboration agreements with CME Group for futures contracts, S&P Global Platts for pricing assessments, and relationships with major exchanges including Korea Exchange, Johannesburg Stock Exchange Ventures, and the International Air Transport Association for the Aviation Carbon Exchange. These partnerships provide access to complementary customer bases, enhance product distribution capabilities, and create additional revenue streams while reinforcing Xpansiv’s position as essential infrastructure for environmental commodities markets.

Digital Innovation and Proprietary Technology

The company’s Digital Feedstock technology transforms primary production data into tradable environmental commodities with verifiable attributes, representing a paradigm shift in commodity market transparency. This proprietary technology enables the creation of “Intelligent Commodities” that can be valued based on comprehensive ESG performance data rather than treating all units as identical. Recent initiatives include blockchain integration through partnerships with Digital Asset’s Canton Network and the SMART Protocol to enable tokenized environmental asset infrastructure, positioning Xpansiv at the forefront of next-generation financial market technology.

Workplace Culture and Employee Recognition

Xpansiv has received multiple workplace awards including recognition as one of the “Best Companies to Work At in 2025” by Built In and “Best Midsize Companies to Work For” by Built In Seattle in 2022. The company’s workplace culture emphasizes innovation, global connections, and employee engagement around its mission to accelerate the global energy transition. This recognition supports talent acquisition and retention in competitive technology markets while demonstrating organizational stability and values alignment that enhances long-term sustainability and operational effectiveness.

10) Potential Risk Areas for Further Diligence

Environmental Commodities Market Concentration Risk

Xpansiv’s dominant market position in environmental commodities creates significant concentration risk across multiple dimensions. The company controls over 90% global market share of exchange-traded and settled carbon credits through its CBL exchange, while its registry software supports more than 80% of global carbon credits and 60% of North American renewable energy certificates. This market dominance, while strategically advantageous, creates dependencies that could pose risks if market confidence in voluntary carbon markets deteriorates or if regulatory changes fundamentally alter market structures. The company’s business model relies heavily on continued growth in environmental commodities trading, which remains subject to policy uncertainties, corporate sustainability commitment changes, and evolving regulatory frameworks across multiple jurisdictions.

Complex Corporate Structure and M&A Integration Risk

Xpansiv’s aggressive acquisition strategy, involving over 11 acquisitions and strategic investments since 2019, creates operational and integration challenges that require ongoing monitoring. The company operates through multiple subsidiary entities across Australia, United States, United Kingdom, and Canada, creating jurisdictional complexity for regulatory compliance and operational oversight. Recent acquisitions including Evolution Markets for $125 million, APX, SRECTrade, OTX, and Evident Group introduce integration risks related to technology platform consolidation, employee retention, customer relationship management, and cultural alignment across geographically dispersed teams. The company’s subsidiary structure spanning CBL Markets USA LLC, CBL Markets Australia Pty Ltd, Xpansiv Data Systems Inc., and other entities requires careful coordination to maintain operational efficiency and regulatory compliance across multiple regulatory regimes.

Cybersecurity and Data Infrastructure Vulnerabilities

As a technology-driven market infrastructure provider processing over one billion asset transfers annually across 13 integrated global registries, Xpansiv faces substantial cybersecurity risks that could impact operations and customer trust. The company’s SOC2 certification demonstrates commitment to security standards, but the scale of data processing and the interconnected nature of environmental commodity registries create attack vectors for sophisticated cybercriminals. The “Perpetual Audit Climate” concept outlined by the company’s Chief Risk Officer acknowledges continuous scrutiny from regulators, auditors, and market participants, requiring robust cybersecurity measures to protect sensitive trading data, customer information, and proprietary technology platforms. Potential vulnerabilities include cloud infrastructure risks, API security concerns, and the challenge of maintaining security across multiple acquired technology platforms with varying security standards.

Regulatory Compliance and Multi-Jurisdictional Risk

Operating across multiple international jurisdictions exposes Xpansiv to complex and evolving regulatory requirements that could impact business operations and compliance costs. The company operates under different regulatory frameworks including Australian Financial Services License (No. 536825) for ACCU trading, SEC registration as an Exempt Reporting Adviser, and compliance requirements across United States, United Kingdom, Australia, and other markets. Changing regulations in environmental commodities markets, including potential CFTC oversight of carbon markets, evolving CORSIA aviation requirements, and state-level renewable energy policies, could require significant operational adjustments or compliance investments. The company’s role in facilitating cross-border environmental commodity transactions subjects it to anti-money laundering requirements, Know Your Customer protocols, and evolving climate disclosure regulations across multiple jurisdictions.

Key Person Dependencies and Executive Transition Risk

Xpansiv relies heavily on key executives with specialized expertise in environmental commodities markets, including CEO John Melby, who assumed the role in October 2023, and other senior leaders with specific domain knowledge in carbon markets, renewable energy, and registry operations. The departure of experienced personnel, such as the October 2023 exit of Rene Velasquez after nine years with the company, highlights succession planning challenges in a specialized industry with limited talent pools. The company’s continued growth strategy and complex technology integration initiatives require sustained leadership stability and institutional knowledge retention across multiple business units and geographic locations.

Revenue Concentration and Market Dependency Risk

Despite diversification efforts, Xpansiv remains significantly dependent on environmental commodities market performance, with 2024 revenue showing renewable energy certificates at 58%, carbon at 26%, and fuels and water at 16%. This concentration in environmental commodities exposes the company to market volatility, regulatory changes affecting demand for carbon credits and renewable energy certificates, and potential shifts in corporate sustainability strategies. The voluntary carbon market experienced significant price volatility and volume fluctuations in recent years, with trading values declining substantially from peak levels, demonstrating the inherent volatility in the company’s core markets. Changes in government policies, corporate ESG commitments, or alternative decarbonization technologies could materially impact demand for the company’s services.

Operational Scalability and Technology Risk

The company’s rapid growth trajectory and expanding global footprint create operational scaling challenges that require careful management to maintain service quality and regulatory compliance. Managing over 100,000 customers in the Managed Solutions division while processing complex environmental commodity transactions requires robust technology infrastructure and operational processes. The company’s reliance on proprietary technology platforms including Digital Feedstock, Xpansiv Connect, and various registry systems creates technology risks related to system outages, integration failures, and the need for continuous platform updates to maintain competitive advantages. Platform interoperability challenges across 13 global registries and multiple trading platforms require ongoing investment in technology infrastructure and maintenance.

Financial Reporting and Audit Risk

As a privately held company with complex subsidiary structures and international operations, Xpansiv faces financial reporting challenges that require robust internal controls and audit processes. The company’s 2024 filing showed operational losses reduced to approximately one-quarter of 2023 levels while increasing revenue by 12%, indicating improving but ongoing profitability challenges. The complex revenue recognition requirements for transaction-based fees, SaaS revenues, and acquisition-related adjustments across multiple subsidiaries and jurisdictions create accounting complexities that require specialized expertise and controls. Environmental commodity market volatility and the need to mark-to-market various positions create additional financial reporting considerations.

Employment and Human Resources Risk

Operating across multiple international jurisdictions with over 200-500 employees creates employment law compliance challenges and potential discrimination or workplace culture risks. The company’s Modern Slavery Statement indicates awareness of supply chain human rights risks but also highlights the complexity of monitoring compliance across global operations. Recent litigation including the September 2024 civil rights case Smith v. Xpansiv Data Systems, Inc. related to Americans with Disabilities Act compliance demonstrates potential employment-related legal exposures. The company’s rapid growth through acquisitions requires careful attention to employment integration, benefits harmonization, and maintaining consistent workplace policies across different jurisdictional requirements.

Emerging Environmental Market Risk

Environmental commodities markets remain relatively nascent and subject to significant regulatory and technological evolution that could impact Xpansiv’s business model and competitive position. Emerging technologies including blockchain-based environmental assets, artificial intelligence in carbon project verification, and alternative crediting mechanisms could disrupt existing market structures and require substantial technology investments to maintain competitive positioning. The company’s investment in blockchain integration through partnerships with Digital Asset’s Canton Network and the SMART Protocol represents both opportunity and risk as these technologies remain unproven at scale. Market evolution toward different environmental commodity categories or trading mechanisms could require significant platform modifications or strategic repositioning.

Industry-Standard Emerging Company Considerations

As a high-growth privately held company, Xpansiv faces standard emerging company risks including capital structure complexity, limited public market liquidity for strategic options, and dependence on private market funding for growth initiatives. The company’s unicorn status at $1.2 billion valuation creates expectations for continued growth performance that may require increased operational complexity or market expansion into higher-risk segments. Potential future public market considerations would introduce additional regulatory requirements, public company governance standards, and market performance pressures that could impact strategic flexibility.

Sources

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