JPMorgan Kinexys collaborates with S&P Global to jointly test 'carbon credit tokenization'

JPMorgan Chase announced on Tuesday that its blockchain division Kinexys is collaborating with S&P Global Commodity Insights, the carbon credit trading tracking agency EcoRegistry, and the carbon credit registration organization International Carbon Registry (ICR) to jointly test a blockchain application for 'carbon credit tokenization'.

According to a statement released on Tuesday, this collaboration aims to build an ecosystem for tokenized carbon credits, attempting to break the current highly fragmented and opaque state of the carbon credit market.

The so-called carbon credits are tradable emission allowances created by various carbon reduction projects such as renewable energy, afforestation, or carbon capture, allowing companies to emit greenhouse gases within certain limits. However, for many years, the carbon credit market has not only lacked unified standards, but also had fragmented trading records and verification processes, making it difficult for companies and investors to fully grasp the true value and flow of carbon assets.

Kinexys' testing program will focus on key areas such as the establishment of carbon credit accounts, project registration, and carbon credit lifecycle management, as well as verifying the compatibility of data models, the technical feasibility of system integration, and the completeness of functionalities.

Alastair Northway, head of JPMorgan's natural resources advisory division, stated: 'Tokenization technology is expected to facilitate a globally interoperable system, thereby enhancing confidence in the integrity of the underlying infrastructure.'

Currently, EcoRegistry and ICR have completed application testing on their respective registration systems, and S&P Global Commodity Insights is expected to begin testing on its 'registration as a service' platform. The three parties will also further explore the feasibility of carbon credit tokenization through this application.

"JPMorgan Kinexys collaborates with S&P Global to jointly test 'carbon credit tokenization'" was first published in (BlockTempo).