JPMorgan's blockchain unit tests a new carbon credit encryption application with S&P Global

JPMorgan's blockchain room, Kinexys, is testing a tokenization application for carbon credits in collaboration with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry. The goal of this partnership is to create a unique ecosystem for tokenized carbon credits, aimed at addressing fragmentation and lack of transparency in the market.

Carbon credits allow companies to emit certain greenhouse gases and are generated from emission reduction projects such as renewable energy and reforestation. Alastair Northway from J.P. Morgan Payments stated that tokenization could enhance the integrity of infrastructure.

EcoRegistry and ICR have tested the application, while S&P Global is expected to test on their registration platform. JPMorgan is also developing the JPMD deposit token, which is expected to launch on the Base network.