Kinexys de JP Morgan, the Blockchain Commercial Unit, a leader in industry, is developing a new innovative blockchain application on Kinexys digital assets, the company’s multi-active tokenization platform, to help tokensine global carbon credits on the registry layer. Exploratory tests are carried out with S&P Global Commodity Insights, Eco Recording and International Carbon Régisry (ICR).
Ecoregistry and the International Carbon Register (Carbon Recording.com) have passed tests on their respective registry solutions. S&P Global Community Insights will start exploratory tests with its environmental environmental solution register, a customizable registry platform as a service to facilitate better monitoring and management of carbon carbon; The tests could also include its Meta Registry®.
World carbon markets are faced with challenges, including ineffectiveness and lack of standardization, transparency and market fragmentation. A single token carbon ecosystem in which credits are portable between sellers and buyers supporting transparent means of settlement could help approach these obstacles.
Alastair Northway, head of natural resources consulting at JP Morgan Payments, said: “The voluntary carbon market is ripe for innovation. Tokenization could support the development of an interoperable system on the global scale which adds confidence in the integrity of the underlying infrastructure. This technology could support greater information and transparency of prices, which could ultimately lead to greater liquidity in the market. ”
The three companies will initially test the viability of carbon credit tokenization by using the application under development on Kinexys digital assets, in order to allow external stakeholders to read and register data from the action register more easily. The tests will focus on managing accounts, project and credit credit, with specific objectives around technical connectivity, compatibility of the data model and full functionalities.
JONTY RUSHFORTH, product and portfolio manager, the energy transition at S&P Global Community Insights, said: “We are delighted that Kinexys of JP Morgan recognizes the value and mission of our environmental register and we welcome its exploration of the use of blockchain technology for the holding of active registers and payments in order to strengthen operations of operations operations in the carbon markets and to continue our credibility and to revive. Meta Régisry®, this could extend our environmental register infrastructure solutions to the financial industry, creating a transformative expansion of the carbon market. »»
Juan Duran, CEO of Eco Recording, said: “The carbon markets are constantly evolving, and by interconnecting their main elements, we improve confidence and transparency through the ecosystem. Our integration with Kinexys’ digital assets is a key step towards expanding the role of the financial sector in this space. ”
Oli Torfason, COO of ICR, said: “We are delighted to collaborate with Kinexys by JP Morgan on this important step towards a modern and convergent structure for the carbon market. This collaboration reflects a common commitment to transparency, innovation and the construction of the infrastructure necessary for a climate economy with high integrity. ”
These important mandates arise while Kinexys by JP Morgan publishes a research document exploring opportunities in the VCM. The report takes advantage of the information of market players and this stage.
The main strengths of the report include:
- Strengthen confidence in the VCM: Transparency, traceability and immutability of blockchain technology, as well as the security of banking quality infrastructure, can contribute to the essential confidence in the VCM.
- Tokenization can act as a catalyst for normalization: To apply tokenization to this market, an asset standard must be developed and agreed, which can then be used on the scale of the large -scale ecosystem.
- There are wider opportunities that must be carried out so that the VCM evolves: Tokenization is not a fixing solution and other factors such as digital surveillance, reports and verification technology are necessary to improve the monitoring and transparency of the quality of the project. Connectivity to carbon market service providers, including rating agencies and insurers, is also imperative.
Keerthi Moudgal, product manager at Kinexys Digital Assets, said: “We are delighted to continue to get involved with carbon market players to build and implement new technology based on blockchain for this ecosystem, because continuous commitment is at the heart of our product development. We look forward to seeing the promise of tokenization. ”
This is the latest example of JPMorganchase’s objective to help accelerate and evolve the growth and development of carbon markets. In 2023, the company published its principles on the carbon markets, summarizing its perspective on the role that the voluntary carbon market plays, the current market challenges and the way Jpmorganchase works to support and take advantage of a more efficient carbon market.
For more information on Kinexys digital assets, click here and read more in Bloomberg.
