Global bank JPMorgan’s blockchain division, Kinexys, has joined forces with S&P Global Commodity Insights to explore the use of tokenization for managing and issuing carbon credits. This initiative is centered around how tokenized carbon credits can be generated and monitored using blockchain technology.

Tokenized carbon credits indicate reductions in greenhouse gas emissions from projects such as reforestation or renewable energy initiatives and are frequently acquired by companies aiming to offset their carbon footprints.

The partnership will examine how blockchain can facilitate credit lifecycle management, ensure data compatibility, and provide access to registries. “Our shared aim is to establish standardized infrastructure that enhances information and price transparency, paving the way for financial innovation and increased market liquidity,” stated Keerthi Moudgal, head of product at Kinexys Digital Assets.

This initiative highlights JPMorgan’s growing involvement in the dynamic tokenization sector, attracting attention from major global banks and asset managers. Tokenization promises improved operational efficiency, 24/7 transaction settlements, and greater transparency in financial activities.

To further illustrate its commitment, JPMorgan operates its own private blockchain network, Kinexys, which now processes around $2 billion in transactions daily.