JPMorgan is testing a blockchain system to tokenize carbon credits in collaboration with S&P Global, EcoRegistry, and the International Carbon Registry.
The initiative aims to enhance transparency and efficiency in the carbon market, addressing issues like fragmentation and credibility.
Tokenization of carbon credits could lead to the creation of a unified, tradable ecosystem, allowing seamless movement between buyers and sellers.
The use of blockchain technology by JPMorgan and partners seeks to innovate the voluntary carbon market, offering improved liquidity and trust.