Virginia Launches SWaN Environmental Credit Market on Hedera

• Virginia’s DEQ launched SWaN to enable real-time trading of stream, wetland, and nutrient credits statewide.
• The platform improves transparency with live pricing, availability and direct transactions across 600+ mitigation sites.
• SWaN runs on Hedera, showing how states use distributed ledgers for regulated environmental and public infrastructure.

Virginia this week launched a statewide digital marketplace for environmental credits through the Department of Environmental Quality, known as SWaN. The platform operates across Virginia and involves DEQ, Water Ledger, and mitigation banks statewide. Officials said the launch modernizes how stream, wetland, and nutrient impacts are offset under Virginia law using Hedera technology.

Statewide Platform for Mitigation and Nutrient Credits

SWaN, short for Stream, Wetland, and Nutrient credits, enables real-time trading of compensatory mitigation credits across Virginia. The Virginia Department of Environmental Quality partnered with Water Ledger to develop and operate the system. According to DEQ, the agency selected Water Ledger through a competitive funding process.

Notably, Virginia requires developers to offset impacts under its “no net loss” policy for wetlands and streams. Developers must replace affected resources within the same watershed. However, SWaN allows permittees to purchase established credits directly from approved mitigation banks.

Wetland and stream banks create restored ecosystems that generate credits once approved. These sites enter perpetual conservation status and cannot be developed later. Therefore, DEQ said the platform supports long-term environmental protection while streamlining compliance.

Transparency and Real-Time Market Data

SWaN introduces features absent from the existing U.S. Army Corps of Engineers tracking system. The new platform shows real-time credit availability, pricing, and digital identifiers for individual credits. Additionally, buyers can complete transactions directly within the system.

DEQ Director Mike Rolband stated that outdated information previously delayed projects and environmental offsets. However, SWaN provides consistent data and immediate visibility across more than 600 mitigation banks and in-lieu fee sites. As a result, the system reduces uncertainty for permittees and credit providers.

The platform also incorporates Virginia’s nutrient credit trading program. That program supports regional stormwater compliance solutions. Therefore, SWaN unifies multiple environmental credit markets into one digital system.

Hedera’s Role in Government Digital Infrastructure

SWaN runs on Hedera, a distributed ledger used for immutable transaction records and traceability. According to the Hedera Foundation, the platform supports transparent supply and demand tracking across Virginia’s environmental markets.

Notably, Virginia’s launch follows other government-led projects on Hedera. Wyoming recently launched the state-backed stablecoin $FRNT on the same network. Together, these projects show state agencies using distributed ledger systems for regulated public functions.