JPMorgan’s Blockchain Arm Explores Tokenized Carbon Credits with S&P Global

JPMorgan's blockchain division, Kinexys, is collaborating with S&P Global Commodity Insights to test the tokenization of carbon credits. The initiative aims to leverage blockchain technology for creating, tracking, and managing these credits, which represent emissions reductions from projects like reforestation and renewable energy.

The partnership will focus on lifecycle management, data compatibility, and registry access. "Our shared aim is to establish standardized infrastructure that enhances information and price transparency," said Keerthi Moudgal, head of product at Kinexys Digital Assets.

Tokenization, a process gaining traction among major financial institutions like BlackRock and Citi, promises operational efficiency, 24/7 settlements, and greater transparency. JPMorgan's private blockchain network, Kinexys, already handles $2 billion in daily settlements.