A new cryptocurrency platform is making headlines for going green. IO DeFi, a company based in the U.K., has launched a crypto investment platform that runs on renewable energy. Hundreds of their data centers now operate using solar, wind, and hydroelectric power instead of traditional fossil fuels.

The platform lets users invest in popular digital currencies like Bitcoin, Ethereum, Ripple, Solana, and Dogecoin. It also offers the chance to earn passive income from these investments. This eco-friendly approach is a breath of fresh air in a space often criticized for its high energy use and environmental impact.

Cryptocurrency mining and transactions typically need massive amounts of electricity, which is usually powered by coal or gas. This not only increases pollution but also puts pressure on national power grids. However, IO DeFi is following the example of a few others around the world—like crypto operations in Kyrgyzstan, Zambia, and Bhutan—that are already using hydro power.

Some cryptocurrencies have also taken steps to reduce their carbon footprint. Ethereum, for instance, has changed its system to use much less energy. But not every region is on board with crypto. In British Columbia, Canada, crypto mining has been banned entirely because it’s seen as a heavy burden on the local power supply, no matter how that power is generated.

The way crypto works is by using networks of computers to verify transactions instead of relying on banks. This process, known as blockchain validation, is secure but uses lots of energy. The rise of artificial intelligence (AI) has added even more demand on data centers, pushing tech giants like Google and Microsoft to explore cleaner energy options like nuclear power.

Keeping data centers energy-efficient is key to reducing pollution from burning coal and gas. These pollutants lead to extreme weather events like floods, droughts, and storms—problems that drive up costs for farming, housing, and disaster recovery.

While investing in crypto can be profitable, it’s important to think about the environmental cost behind the scenes. A report by the United Nations suggests that digital currencies aren’t necessarily bad for the planet—but they need better regulation and cleaner technology to be truly sustainable.

As Professor Kaveh Madani noted in the study: “Digital currencies can still play a valuable role. We just need smarter rules and tech solutions to make them cleaner and more efficient.”

For those looking to make smarter choices with their money and reduce their carbon footprint, platforms like IO DeFi could be part of a cleaner financial future.