JPMorgan's blockchain arm, Kinexys, has teamed up with S&P Global to explore the tokenization of carbon credits. This initiative aims to create and track carbon credits utilizing blockchain technology to enhance transparency and liquidity in the market. The project will examine how blockchain can manage the lifecycle of credits, ensure data compatibility, and provide registry access. The goal is to establish standardized infrastructure that promotes better information flow and price transparency, potentially leading to financial innovation in carbon markets. JPMorgan has been an early leader in this rapidly growing tokenization space, leveraging its blockchain network Kinexys, which reportedly settles $2 billion in daily transactions. This collaboration underscores the bank's ongoing investments in the integration of traditional financial instruments with blockchain technology, offering the promise of more efficient operations and continuous settlement.

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