Northern Trust has joined an initiative from the Hong Kong Monetary Authority (HKMA) to develop an experimental framework for the cross-border trading of digital carbon credits.
Named Project Ensemble, the initiative aims to increase access to trading tokenised voluntary carbon credits.
“Our participation in Project Ensemble represents a significant step in bridging digital asset innovation with sustainable finance on a global scale,” said Justin Chapman, group head of strategic partnerships, digital assets and financial markets at Northern Trust.
“By collaborating with industry peers and regulators in Hong Kong, we are exploring new ways to connect markets and facilitate cross-border carbon credit transactions.”
Northern Trust will use its digital platform, the Northern Trust Carbon Ecosystem, to manage the entire lifecycle of digital carbon credits with private blockchain technology.
Central to this initiative is the Ensemble Sandbox, which facilitates the testing of tokenization use cases across different areas, such as green and sustainable finance.
Angelo Calvitto, head of Asia Pacific at Northern Trust, said Hong Kong stands out in the region, as a key hub for both sustainable finance and tokenisation. He said the initiative would unlock new opportunities across APAC’s markets.
“Northern Trust’s participation in Project Ensemble underscores our commitment to being at the forefront of this regional transformation, connecting tokenised markets and building the cross-border sustainable finance infrastructure that will power the next generation of financial services,” said Calvitto.
To find out more about Northern Trust’s digital Carbon Ecosystem, read Justin Chapman’s interview with Capital Pioneer.
