JPMorgan’s blockchain unit tests new carbon credit tokenization application with S&P Global

JPMorgan's blockchain division Kinexys is testing its upcoming blockchain application for carbon credit tokenization alongside S&P Global Commodity Insights, EcoRegistry and the International Carbon Registry.

The collaboration aims to establish a single ecosystem for tokenized carbon credits that can address fragmentation and transparency issues in the market, according to the company's Tuesday release.

Carbon credits are tradable permits that allow companies to emit a certain amount of greenhouse gases. These credits are generated by projects that actively reduce emissions, such as renewable energy projects, reforestation initiatives, or carbon capture technologies. 

"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.

EcoRegistry and the ICR have completed testing the application on their registry solutions, while S&P Global is expected to test the application on its registry-as-a-service platform. The three companies will also explore the viability of tokenizing carbon credits using the application, which is still being developed by Kinexys, according to the release.

"The testing will focus on account, project and credit lifecycle management, with specific objectives around technical connectivity, data model compatibility and complete functionality," the release noted.

Meanwhile, JPMorgan, an early adopter of blockchain technology, is reportedly working to launch a stablecoin-like deposit token called JPMD, which is expected to launch on the Base network. This would mark Kinexys' first deployment on a public blockchain.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.