Giant JPMorgan Chase For Financial Services is reportedly looking for carbon credits with a trio of companies for a test run.
According to a new report Van Bloomberg works Kinexys, a Blockhain Arm JPMorgan, together with S&P Global Commodity Insights, Ecoregistry and the International Carbon Registry to test a protocol that credits would Tokenize in registers that supervise the companies.
The report says that Kinexys is investigating whether blockchain technology can be applied to regular activities.
In a statement, JPMorgan said that the tokenization of carbon credits could tackle the current problems within carbon markets, such as market fragmentation, a lack of standardization and transparency problems.
The bank continued to say that a system that could be transferred to credits between buyers and sellers who could tackle these problems.
Carbon credits are permits that enable those who hold them to expel a ton of greenhouse gases and are intended to stimulate the reduction in emissions, such as carbon dioxide. They can be purchased and sold through non-governmental voluntary markets.
In an earlier report, JPMorgan said that the Carbon Asset class “is ready to grow up as the market infrastructure strengthens and innovation continues.” However, the bank also noticed that as a market infrastructure and innovation staggered, so could trust and demand.
As mentioned by Alastair Northway, head of the Natural Resource Advisory at JPMorgan payments, payments,
“Tokenization could support the development of a global interoperable system that adds confidence to the integrity of the underlying infrastructure. This technology can support more information and price transparency, which could ultimately lead to greater liquidity in the market.”
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