Go Balance working with Northern Trust for Development of Digital Carbon Credit Ecosystem
Northern Trust is developing a digital platform for institutional voluntary carbon credit transactions
Go Balance is pleased to announce its participation in the development of the voluntary carbon credit ecosystem developed by Northern Trust (Nasdaq: NTRS). The fully digital platform allows purchasers to transact tokenized carbon credits directly with project developers and retire these against their carbon footprint. You can read the full press release here.
Successful MVP validates fully automated transactions of tokenized carbon credits utilizing private ledger digital blockchain technology
The announcement follows Northern Trust’s successful milestone of completing fully automated transactions on the initial minimum viable product (MVP) digital carbon credit platform it has developed with carbon avoidance and removal project developers including Go Balance in addition to institutional buyers. Transactions were initiated with the project developers on the MVP in a fully automated way.
The ecosystem utilizes private ledger digital blockchain technology to connect institutional buyers with carbon credit suppliers who are focused on solutions to reduce greenhouse gases including carbon dioxide. The fully digital platform allows purchasers to transact tokenized carbon credits directly with project developers and retire these against their carbon footprint.
Justin Chapman, global head of Digital Assets and Financial Markets, at Northern Trust, said: “The use of digital technology to manage the lifecycle of carbon credits gives both the buyer and project developers confidence and transparency through the lifecycle of their voluntary carbon credit transactions.”
Ciaran Kelly, chief executive officer at Go Balance Limited, said: “Northern Trust’s approach to digitizing the voluntary carbon credit market has the potential to enable project developers such as Go Balance Limited to enhance our focus on initiatives to avoid deforestation by streamlining time consuming administration tasks. The solution will make it easier for all participants to track, manage and transact the registry of carbon credits, whilst also delivering full transparency to the end-to-end lifecycle of a voluntary carbon credit.”
Digital Platform Powered by Innovation
Project developers transact with buyers of voluntary carbon credits via an online platform. Legal agreements are generated using smart contracts, driving full straight-through transfer and settlement of the digital credits for fiat currency on the specified settlement date.
Further development of the platform, including the first official live transaction, is planned in late 2023.
Northern Trust Asset Servicing has been a leading innovator in the digital transformation of securities servicing, including pioneering the use of blockchain technology in private equity fund administration in 2017.
This release was originally published by Northern Trust on 11th September 2023. You can find the original article here: https://www.northerntrust.com/united-states/pr/2023/northern-trust-developing-digital-platform-for-institutional-voluntary-carbon-credit-transactions