JP Morgan Chase and its blockchain unit Kinexys have announced the launch of a pilot program for tokenized carbon credits in collaboration with S&P Global Commodity Insights and other experts.
Partnership and Pilot Program
JP Morgan Chase is partnering with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry to develop tokenized carbon credits as part of a pilot program. This collaboration signifies the bank's deepening efforts in the real asset tokenization market.
Potential of Tokenized Carbon Credits
Alastair Northway, head of natural resource advisory at JPMorgan Payments, stated that "the voluntary carbon market is ripe for innovation." He added that tokenization could support the development of a globally interoperable system that enhances trust in the infrastructure.
Carbon Credit Market
According to forecasts, the global carbon credit market is expected to be valued at $933.23 billion by 2025, and it will grow into trillions by 2030. Tokenized carbon credits may streamline trading and standardize ownership tracking, potentially increasing market liquidity.
The launch of the tokenized carbon credits program by JP Morgan Chase could significantly impact the carbon credit market, creating standardized solutions to enhance trading efficiency.
