Nasdaq has launched a new technology designed to digitise the issuance, settlement and custody of carbon credits aimed at enhancing the global carbon markets.
The technology addresses challenges in the carbon credit market, characterised by bilateral trading and manual processes, by enabling market operators and registries to create and distribute standardised digital credits with complete auditability.
Nasdaq has developed a carbon taxonomy framework and a set of APIs to aid market interactions, aiming to establish an ecosystem that attracts diverse investor liquidity.
The service employs smart contract technology to automate asset servicing and settlement processes, improving efficiency and transparency.
Nasdaq said it offers an audit trail of credit ownership and retirement and can be integrated with existing financial architectures or function as a standalone platform, allowing infrastructure providers to access the carbon markets without significant cost implications.
The technology can be deployed on a centralised database or private blockchain, offering versatility for infrastructure providers.
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