The Blockchain Arm Kinexys from World Bank Jpmorgan works with S&P Global Community Insights to explore tokenization for the management and delivery of carbon credits, companies announced on Wednesday.
The project, according to a press release, focuses on the test of how token carbon credits can be created and followed using the blockchain infrastructure. These credits, which represent the reductions in greenhouse gas effects such as reforestation or renewable energies, are often purchased by companies aimed at compensating for their emissions.
Companies will focus on how blockchain manages the management of the credit life cycle, data compatibility and access to the register.
“Our common objective is to establish standardized infrastructures that improve transparency information and prices, paving the way for financial innovation and the increase in market liquidity,” said Keerthi Moudgal, product manager at Kinexys Digital Active.
The initiative underlines the growing presence of JPMorgan in the red tokenization space, a sector that has attracted world banks and asset managers such as Blackrock, HSBC and CIITI. Tokenization is the process of using blockchain rails to carry out transactions with traditional financial instruments, promising more effective operations, 24 -hour establishments and increased transparency.
JPMorgan was an early leader who exploits his own Kinexys private blockchain network, formerly known as ONYX and JPM Coin, which is now set up for $ 2 billion in daily transactions, according to the bank. He also piloted a deposit token called JPMD on base last month, an Ethereum Layer-2 network developed by Coinbase.
Read more: the tokenization market for real assets has increased almost in 3 years
