JPMorgan Chase is actively exploring the tokenization of Carbon Credit Limits and has partnered with three carbon credit firms.

On July 2nd, as per Bloomberg, JPMorgan Chase & Co. is in the process of developing a novel service for tokenizing carbon credits. It has formed a partnership with three carbon credit companies for initial testing. According to a statement made on Wednesday, the bank's blockchain division, Onyx, will collaborate with S&P Global Commodity Insights, the carbon registry EcoRegistry, and the International Carbon Registry. They will jointly test a new application that aims to convert carbon credits from the regulated registries of these three institutions into tokens. The parties will explore whether blockchain technology can be applied to the entire life cycle management of carbon credits, including the tracking of ownership from issuance to retirement. In its statement, JPMorgan Chase stated that the carbon market is confronted with "challenges such as inefficiency, lack of standardization, insufficient transparency, and market fragmentation". The application of tokenization technology is expected to bring significant benefits. The bank believes that establishing a unified tokenized ecosystem where "buyers and sellers can smoothly transfer carbon credits" will assist in addressing these issues.