BlockBeats News, July 2, according to Bloomberg, JPMorgan Chase & Co. is developing a new service to tokenize carbon credits and has partnered with three carbon credit companies for initial testing.

According to a statement on Wednesday, the bank's blockchain department, Onyx, will collaborate with S&P Global Commodity Insights, carbon registry EcoRegistry, and the International Carbon Registry to jointly test a new application that will transform carbon credits from the three institutions' regulated registries into tokens. The parties will explore whether blockchain technology can be applied to the full lifecycle management of carbon credits, including ownership tracking from issuance to retirement.

In its statement, JPMorgan Chase stated that the carbon market faces "challenges such as inefficiency, lack of standardization, inadequate transparency, and market fragmentation", and the application of tokenization technology will bring significant benefits. The bank believes that establishing a unified tokenized ecosystem where "buyers and sellers can seamlessly transfer carbon credits" will help address these issues.