The Blockchain arm of Global Bank JPMorgan Kinexys is working with S&P Global Commodity Insights to explore the tokenization for the management and issuance of carbon credits, companies said on Wednesday.
The project, according to a press release, focuses on proveing how carbon loans can be created and tracked in tokenized using blockchain infrastructure. These credits, which represent reductions of greenhouse gases of projects such as reforestation or renewable energy, are often purchased by companies that seek to compensate for their emissions.
Companies will focus on how Blockchain manages the management of the credit cycle, data compatibility and access to registration.
“Our shared objective is to establish a standardized infrastructure that improves the information and transparency of prices, paving the path for financial innovation and the increase in market liquidity,” said Keerthi Moudgal, head of product of Kinexys Digital Assets.
The initiative underlines the growing presence of JPMorgan in the red -lived tokenization space, a sector that has attracted global asset banks and administrators such as Blackrock, HSBC and Citi. Tokenization is the process of using blockchain rails to carry out transactions with traditional financial instruments, promising more efficient operations, settlements all day and greater transparency.
JPMorgan has been one of the first leaders that operate its own private blockchain network Kinexys, previously known as Onyx and JPM Coin, which now resolves $ 2 billion in daily transactions, according to the bank. Last month he also piloted a deposit token called JPMD at the base, an Ethereum Layer-2 network developed by Coinbase.
Read more: the real world asset tokenization market has grown almost five times in 3 years
