JPMorgan Chase is seeking to tokenize carbon credits and has conducted preliminary experiments with three carbon credit companies
ChainCatcher news, according to Bloomberg, JPMorgan is developing a new service to tokenize carbon credits and has partnered with three carbon credit companies for preliminary trials.According to a statement on Wednesday, the bank's blockchain division, Onyx, will collaborate with S&P Global Commodity Insights, the carbon registry EcoRegistry, and the International Carbon Registry to test a new application that will convert carbon credits from the regulatory registration systems of the three institutions into tokens. The parties will explore whether blockchain technology can be applied to the full lifecycle management of carbon credits, including ownership tracking from issuance to retirement.JPMorgan stated in the announcement that the carbon market faces challenges such as "inefficiencies, lack of standardization, insufficient transparency, and market fragmentation," and the application of tokenization technology will bring significant benefits. The bank believes that building a unified tokenization ecosystem where "buyers and sellers can seamlessly transfer carbon credits" will help address these issues.