The post JPMorgan Moves on Carbon Credit Tokenization as SEC Pivots appeared on BitcoinEthereumNews.com.

JPMorgan Chase is taking concrete steps toward tokenizing carbon credits, partnering with S&P Global and environmental registries through its Kinexys blockchain unit. The move comes as the US Securities and Exchange Commission, under new Chair Paul Atkins, shifts toward a more supportive regulatory approach.  In recent comments, Atkins described tokenization as an innovation worth advancing. JPMorgan’s Kinexys Division Pilots Blockchain-Based Carbon Credit Tokenization with Global Partners In a strategic push to modernize and streamline the global carbon credit ecosystem, JPMorgan’s blockchain arm, Kinexys, is testing a new application designed to tokenize carbon credits in partnership with industry leaders S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry (ICR). The collaborative effort aims to address persistent challenges in the voluntary carbon market—namely fragmentation, opacity, and lack of standardization—through blockchain-powered transparency and interoperability. According to a company release on Tuesday, the pilot project is designed to create a unified digital infrastructure for carbon credits, potentially reshaping the way corporations, governments, and environmental stakeholders manage and trade carbon emissions allowances. “Tokenization could support development of a globally interoperable system that adds confidence into the integrity of the underlying infrastructure,” said Alastair Northway, Head of Natural Resource Advisory at J.P. Morgan Payments. Tackling Complexity in a Fragmented Carbon Market Carbon credits represent verified units of carbon emission reductions generated by projects such as reforestation, renewable energy, or carbon capture initiatives. These credits are critical for helping companies meet sustainability goals and comply with environmental regulations. However, the market has long struggled with fragmentation across registries, inconsistent data formats, and concerns about double-counting or the legitimacy of credits. Kinexys’ blockchain application seeks to digitize and standardize the entire lifecycle of carbon credits—from issuance to retirement—on a secure, transparent, and interoperable platform. The technology is being developed to enable greater confidence and efficiency in carbon…

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Filed under: News - @ July 3, 2025 1:29 pm