From Wall Street To Web3: Carbon Markets Move On-chain
TradFi has taken another big step into Web3 with the launch of JP Morgan Chase’s tokenized carbon credit platform. The system uses blockchain tech to clear the murk from voluntary markets plagued by opacity and inconsistency.
Credits will be trackable from issuance to retirement, Morgan says, improving transparency, trust, and trading efficiency. Trials with firms like S&P Global Commodity Insights are already underway.
Moving carbon credits on-chain adds a new wrinkle to the real world asset (RWA) tokenization trend. Institutions from BlackRock to Deutsche Bank are looking at blockchain as a vehicle for streamlining settlement for instruments like stocks and treasury bills.
For Morgan, voluntary carbon markets present a unique opportunity. In an asset class where trust is low and friction is high, digitization could join-up fragmented systems and bed-in global standards.
Alastair Northway, head of natural resource advisory at JPMorgan Payments, said that tokenization is “Web3 disruptor for carbon credits, promising better price visibility, liquidity, and a globally compatible framework.”
As the Wall Street giant expands further into Web3, it aims to explore whether blockchain can enhance trust and foster greater participation in carbon markets.
Cleaning Up Carbon Markets’ Reputation
Each carbon credit represents one metric tonne …
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