The blockchain is designed to eliminate the problems characteristic of the American carbon loans market, such as fragmentation, lack of standards and lack of transparency.
JP Morgan explained that tokenization involves the creation of digital assets representing the ownership of carbon loans and certifying the reduction of carbon emissions by the buyer. Tokenization will allow you to track the movement of loans from emission to write -off, minimizing the risks of double accounting and fraud.
According to the head of the advisory department of the natural resources of JP Morgan Payments Alastair Northway, “the voluntary carbon loan market is ready for innovation”, and the blockchain platform will ensure global compatibility of tokenized assets and increase the market trust.
If the initiative of JP Morgan, a real opportunity will appear to increase the liquidity of the carbon loan market, which is now estimated at $ 2 trillion, as well as to bring environmentally oriented digital assets to large cryptocurrency trading platforms, Northway said.
Earlier, the JPMorgan Chase banking corporation has applied to the US Patent and US trademarks (USPTO) for registering a trademark for a new digital asset called JPMD.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
%20Luca%20Delpia%20-%20Archivio%20della%20Fondazione%20I%20Teatri%20Reggio%20Emilia%201071%20b%20(002).jpg "The CCCP on stage in Legnano for the last call: “If you weren’t there, we would not be here”")
