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CoinDesk 2025-07-02 19:16:06

JPMorgan’s Blockchain Arm Kinexys Tests Tokenized Carbon Credits with S&P Global

Global bank JPMorgan’s blockchain arm Kinexys is working with S&P Global Commodity Insights to explore tokenization for managing and issuing carbon credits, the firms said on Wednesday. The project, according to a press release, focuses on testing how tokenized carbon credits can be created and tracked using blockchain infrastructure. These credits, which represent greenhouse gas reductions from projects like reforestation or renewable energy, are often bought by companies aiming to offset their emissions. The firms will focus on how blockchain handles credit lifecycle management, data compatibility and registry access. "Our shared aim is to establish standardized infrastructure that enhances information and price transparency, paving the way for financial innovation and increased market liquidity," said Keerthi Moudgal, head of product at Kinexys Digital Assets. The initiative underscores JPMorgan's growing presence in the red-hot tokenization space, a sector that has attracted global banks and asset managers such as BlackRock , HSBC and Citi . Tokenization is the process of using blockchain rails to transact with traditional financial instruments, promising more efficient operations, around-the-clock settlements and increased transparency. JPMorgan has been an early leader operating its own private blockchain network Kinexys, formerly known as Onyx and JPM Coin, which now settles $2 billion in daily transactions, according to the bank. It also piloted last month a deposit token called JPMD on Base, an Ethereum layer-2 network developed by Coinbase. Read more: Real-World Asset Tokenization Market Has Grown Almost Fivefold in 3 Years

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