JPMorgan’s Tests Carbon Credit Tokenization On The Blockchain
JPMorgan Chase & Co. (NYSE:JPM) is working on a blockchain-powered system to tokenize carbon credits as part of its efforts to improve tracking, transparency, and trading efficiency in the carbon markets.
What Happened: The U.S. bank’s blockchain division, Kinexys, is collaborating with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry to launch a pilot project, Bloomberg reported.
The trial will test whether blockchain technology can help track carbon credits from issuance to retirement, potentially reducing market inefficiencies and enhancing traceability.
Tokenization is gaining momentum across financial markets, with major institutions such as BlackRock (NYSE:BLK) and Deutsche Bank (NYSE:DB) exploring ways to digitize real-world assets like stocks and Treasury bills to streamline trade settlement.
JPMorgan believes applying similar digital solutions to the voluntary carbon markets could address …
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