Press release
Nasdaq Launches New Technology to Scale Global Carbon Markets
Technology Securely Digitizes the Issuance, Settlement, and Custody of Carbon Credits Service Uses Smart Contract Language, Deployed via Private Centralized
About this update from Nasdaq, Inc.
[{"type":"text","content":"Technology Securely Digitizes the Issuance, Settlement, and Custody of Carbon Credits Service Uses Smart Contract Language, Deployed via Private Centralized Database or Private, Blockchain Technology for Enterprises Puro.earth to Register Carbon Removal Credits Using the Technology NEW YORK, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today announced the launch of a pioneering new technology that securely digitizes the issuance, settlement, and custody of carbon credits. It will be provided to market infrastructures, registry platforms, and other service providers globally. The service will ultimately support the development and institutionalization of global carbon markets. Despite being a relatively young market the carbon credit operating model is characterized by bilateral trading and a heavy reliance on manual interaction, providing limited ability to scale as the market develops. This inflexibility has also led to an absence of standardization – where credit data can be categorized and integrated into existing systems – which is a major barrier to attracting significant capital flows. The technology will allow market operators and registries to create standardized digital credits and distribute them with full auditability throughout the transaction lifecycle. Nasdaq has also developed a carbon taxonomy framework that can readily incorporate new types of credit as the market evolves, along with a comprehensive set of APIs that will allow participants to seamlessly interact across the market. Together, this will help establish a standardized, trusted ecosystem capable of attracting high-quality liquidity from a variety of investors. “Fragmented technology choices in the trading and settlement of carbon credits has prevented the carbon industry from growing and maturing as an asset class. A lack of system flexibility, standardization, and connectivity has made it challenging for critical infrastructure providers and institutional investors to access the market in a meaningful way,” said Roland Chai, Executive Vice President and Head of Marketplace Technology at Nasdaq. “Bringing institutional grade technology to underpin the market will drive ever-greater liquidity across carbon marketplaces and open the possibility of greater interoperability between registries in the future.” The service will utilize smart contr...