Global Bank JPMorgan’s Blockchain Arm Kinexys works with S&P Global Commodity Insights to explore tokenization for managing and issuing carbon credits, companies said Wednesday.
According to a press release, the project focuses on testing how tokenized carbon credits can be created and tracked using blockchain infrastructure. These credits, which represent greenhouse gas reductions from projects such as replanting or renewable energy, are often purchased by companies aimed at equalizing their emissions.
Companies will focus on how blockchain handles credit life cycle management, data compatibility and registry access.
“Our shared goals are to establish standardized infrastructure that improves information and price transparency and paves the way for financial innovation and increased the market’s liquidity,” said Keertthi Moudgal, product manager at Kinexy’s digital assets.
The initiative emphasizes JPMorgan’s growing presence in the red -hot stokenization space, a sector that has attracted global banks and asset managers such as Blackrock, HSBC and Citi. Tokenization is the process of using blockchain rails to trade traditional financial instruments that promise more efficient operations, around the clock settlements and increased transparency.
JPMorgan has been an early leader who runs his own private blockchain network Kinexys, formerly known as Onyx and JPM Coin, which now runs $ 2 billion dollars in daily transactions, according to the bank. Last month it also piloted a deposit dock called JPMD on the base, an Ethereum Layer-2 network developed by Coinbase.
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