JPMorgan Chase is looking to tokenize carbon credits and has partnered with three carbon credit companies

Odaily News JPMorgan Chase & Co. is developing a new service to tokenize carbon credits and has partnered with three carbon credit companies for initial trials, according to a Bloomberg report. According to a statement on Wednesday, the bank's blockchain unit Onyx will work with S&P Global Commodity Insights, carbon registry EcoRegistry and International Carbon Registry to test a new application that converts carbon credits in the three regulatory registries into tokens. The parties will explore whether blockchain technology can be applied to the full life cycle management of carbon credits, including tracking ownership from issuance to cancellation. In a statement, JPMorgan said that the carbon market has "challenges such as inefficiency, lack of standardization, lack of transparency and market fragmentation," and the application of tokenization technology will bring significant benefits. The bank believes that building a unified tokenized ecosystem where "buyers and sellers can seamlessly transfer carbon credits" will help solve these problems.