JPMorgan and S&P Global Explore Blockchain Carbon Credit Tokenization

JPMorgan’s blockchain division Kinexys has partnered with S&P Global Commodity Insights to explore how blockchain can be used to tokenize carbon credits, aiming to improve transparency, efficiency, and market liquidity in the carbon offset market.

Announced Wednesday, the project will test how tokenized carbon credits—digital representations of emissions reductions from projects like reforestation or renewable energy—can be created, tracked, and managed on blockchain networks. These credits are often purchased by companies to offset their carbon emissions and meet sustainability goals.

The collaboration focuses on evaluating blockchain's ability to manage the entire carbon credit lifecycle, from issuance to retirement, while ensuring compatibility with data standards and access to carbon registries. “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 marks JPMorgan’s continued push into the rapidly growing tokenization sector, where financial institutions are digitizing real-world assets to enable faster, cheaper, and more transparent transactions. JPMorgan is already a leader in this space through Kinexys, formerly known as Onyx, which facilitates $2 billion in daily blockchain-based settlements.

In a further move into public blockchain applications, JPMorgan recently piloted JPMD, a deposit token, on Base—an Ethereum layer-2 network developed by Coinbase. The partnership with S&P Global highlights a growing trend among major institutions like BlackRock, HSBC, and Citi, all seeking to leverage blockchain to modernize financial infrastructure and enhance sustainability markets.

This blockchain-carbon credit initiative positions JPMorgan at the forefront of digital asset innovation, combining finance, sustainability, and next-gen technology to reshape the voluntary carbon market.