Financial services giant JPMorgan Chase is reportedly looking to tokenize carbon credits with a trio of companies for a trial run.
According to a new report from Bloomberg, Kinexys, a blockhain arm JPMorgan, is teaming up with S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry to test a protocol that would tokenize credits listed in registries overseen by the firms.
The report says that Kinexys is exploring whether blockchain technology can be applied to regular activities.
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In a statement, JPMorgan said that the tokenization of carbon credits could address current issues within carbon markets, such as market fragmentation, a lack of standardization, and transparency problems.
The bank went on to say that a system that would let credits be easily transferred between buyers
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