Redefining Value From Outcome Based Funding to Tradeable Impact 2025

Exemplified tokenization/securitization of social impact FIGURE 2 Project creates positive impact (education, healthcare, carbon mitigation, etc.).Outcome payors initially pay for impact.Companies buy financial asset and hold them on their balance sheet. Companies sell assets to other market actors as needed.Verification organization verifies and assures impact.Impact is securitized as a financial asset.Companies may retire assets to fulfill their impact obligations (carbon mitigation, social impact, etc.). 1 2 3 4 56a 6b Phase 1: Emergence In the early stages, community-driven platforms and financial innovators could test mechanisms to tokenize and trade social impact. Initiatives like Zlto and the Common Good Marketplace (CGM) could launch locally verified social tokens, rewarding activities such as access to healthcare, improved education and poverty elimination. These tokens would create economic ecosystems that are anchored locally, where social contributions are acknowledged as measurable and exchangeable value.Simultaneously, under this scenario, financial pioneers introduce tokenized impact credits inspired by carbon markets. Platforms like Toco and early- stage social impact bonds would enable businesses and individuals to translate social contributions into verified, tradeable credits. Governments could begin offering tax incentives and subsidies to support these mechanisms, while standard- setters could work to harmonize valuation and verification frameworks. CASE STUDY 4 Common Good Marketplace CGM is a digital platform that converts verified social and environmental outcomes into standardized verified impact assets (VIAs), enabling funders to purchase and support tangible progress towards the SDGs. In 2024, CGM facilitated the allocation of over $2.1 million in social value transactions, supporting initiatives like Village Enterprise’s poverty alleviation programmes in Kenya. These programmes achieved significant outcomes, including a 58% increase in household consumption and a 74% rise in net savings among participating households. Such results are independently verified and recorded on blockchain and/or CGM’s public ledger, ensuring transparency and accountability. Image credit: Village Enterprise Redefining Value: From Outcome-Based Funding to Tradeable Impact 15