Kinexys by J.P. Morgan partners with S&P Global Commodity Insights, EcoRegistry, and International Carbon Registry to pilot a blockchain application that tokenizes carbon credits at the registry level.
The initiative aims to enhance market transparency, efficiency, and trust by enabling interoperable and standardized digital infrastructure for the voluntary carbon market (VCM).
Testing focuses on full lifecycle tracking and registry interoperability, supporting the firm’s broader goal to scale carbon markets through blockchain innovation.
J.P. Morgan’s blockchain unit, Kinexys, has launched the next phase of its carbon market initiative, developing a blockchain-based application to tokenize global carbon credits. The solution—built on Kinexys Digital Assets, the firm’s multi-asset tokenization platform—is being tested with three leading players in the voluntary carbon market (VCM): S&P Global Commodity Insights, EcoRegistry, and the International Carbon Registry (ICR).
EcoRegistry and ICR have completed initial tests, while S&P Global Commodity Insights will begin exploratory testing on its Environmental Registry, a customizable registry-as-a-service platform, with potential future inclusion of its Meta Registry®.
“Carbon markets are evolving constantly, and by interconnecting their core elements, we enhance trust and transparency across the ecosystem,” said Juan Duran, CEO of EcoRegistry. “Our integration with Kinexys Digital Assets is a key step toward expanding the financial sector’s role in this space.”
The new application is designed to address inefficiencies, lack of transparency, and fragmentation in the global carbon market—by enabling tokenized carbon credits that can be securely tracked and transferred between registries, buyers, and sellers.
“The voluntary carbon market is ripe for innovation,” said Alastair Northway, Head of Natural Resource Advisory at J.P. Morgan Payments. “Tokenization could support development of a globally interoperable system that adds confidence into the integrity of the underlying infrastructure. This technology could support greater information and price transparency, which could ultimately lead to greater liquidity in the market.”
All three registries are now testing the application’s core capabilities, including account, project, and credit lifecycle management, data model compatibility, and technical connectivity.
“We’re pleased Kinexys by J.P. Morgan recognizes the value and mission of our Environmental Registry,” said Jonty Rushforth, Head of Product & Portfolio, Energy Transition at S&P Global Commodity Insights. “If this collaborative testing progresses as hoped—and eventually includes our Meta Registry®—this could extend our environmental registry infrastructure solutions to the financial industry, creating a transformative carbon market expansion.”
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Oli Torfason, COO of ICR, added, “This collaboration reflects a shared commitment to transparency, innovation, and building the infrastructure needed for a high-integrity climate economy.”
The announcement is backed by a research paper released by Kinexys, summarizing insights from carbon market participants and outlining the role blockchain can play in scaling carbon markets:
Blockchain transparency can restore trust in carbon credit systems through traceable and immutable records secured by bank-grade infrastructure.
Tokenization can catalyze standardization, provided a common asset standard is adopted across the ecosystem.
Market infrastructure must evolve, with digital monitoring, reporting, and verification (MRV) tech, along with connectivity to ratings and insurance providers, to fully support scalability and quality.
“We are excited to continue engaging with carbon market participants to build and implement new blockchain-based technology for this ecosystem,” said Keerthi Moudgal, Head of Product at Kinexys Digital Assets. “We look forward to seeing the promise of tokenization come to fruition and the transformation of the voluntary carbon market from the ground-up.”
This initiative follows JPMorgan Chase’s 2023 release of its Carbon Markets Principles, which outlines its long-term commitment to driving credible, scalable growth in the VCM through financial innovation and robust infrastructure.
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