JPMorgan’s Kinexys Collaborates with S&P Global on Tokenized Carbon Credits
JPMorgan’s blockchain unit, Kinexys, is collaborating with S&P Global Commodity Insights to explore the tokenization of carbon credits. The goal is to test the creation and tracking of these credits through blockchain technology.
- The project will address credit lifecycle management, data compatibility, and registry access.
- Tokenized carbon credits represent greenhouse gas reductions from initiatives like reforestation or renewable energy.
- Both firms aim to create standardized infrastructure for improved information transparency and market liquidity.
- JPMorgan operates its own private blockchain network, Kinexys, which processes $2 billion in daily transactions.
- Recently, JPMorgan piloted a deposit token called JPMD on Base, an Ethereum layer-2 network.
This initiative reflects JPMorgan's expanding role in the tokenization sector, joining other major financial institutions. Tokenization aims to enhance transaction efficiency and transparency in traditional financial instruments.