Northern Trust Launches Digital Solution for Institutional Voluntary Carbon Credits with First Official Live Transactions
Northern Trust (Nasdaq: NTRS) has officially launched The Northern Trust Carbon Ecosystem™, a blockchain-based platform enabling institutional buyers to digitally access carbon credits from project developers. The platform, powered by Northern Trust Matrix Zenith™, has completed its first live transactions with Water Recovery Systems IP and CUT Carbon Distributed Technologies AG selling carbon credits to institutional buyers.
The ecosystem utilizes private ledger digital blockchain technology to facilitate direct purchases and retirements of digital carbon credits, with Northern Trust acting as the designated custodian. This launch supports the growing interest in the Voluntary Carbon Market by providing a digital lifecycle management capability for voluntary carbon credits, offering a seamless and secure settlement experience.
Northern Trust (Nasdaq: NTRS) ha lanciato ufficialmente The Northern Trust Carbon Ecosystem™, una piattaforma basata su blockchain che consente agli acquirenti istituzionali di accedere digitalmente ai crediti di carbonio dai sviluppatori di progetti. La piattaforma, alimentata da Northern Trust Matrix Zenith™, ha completato le sue prime transazioni dal vivo con Water Recovery Systems IP e CUT Carbon Distributed Technologies AG che vendono crediti di carbonio a acquirenti istituzionali.
L'ecosistema utilizza la tecnologia blockchain a ledger privato per facilitare acquisti e ritiri diretti di crediti di carbonio digitali, con Northern Trust che funge da custode designato. Questo lancio supporta il crescente interesse per il Mercato Volontario del Carbonio fornendo una capacità di gestione del ciclo di vita digitale per i crediti di carbonio volontari, offrendo un'esperienza di regolamento senza soluzione di continuità e sicura.
Northern Trust (Nasdaq: NTRS) ha lanzado oficialmente The Northern Trust Carbon Ecosystem™, una plataforma basada en blockchain que permite a los compradores institucionales acceder digitalmente a los créditos de carbono de los desarrolladores de proyectos. La plataforma, impulsada por Northern Trust Matrix Zenith™, ha completado sus primeras transacciones en vivo con Water Recovery Systems IP y CUT Carbon Distributed Technologies AG vendiendo créditos de carbono a compradores institucionales.
El ecosistema utiliza tecnología de blockchain de libro mayor privado para facilitar la compra y retiro directo de créditos de carbono digitales, con Northern Trust actuando como el custodio designado. Este lanzamiento respalda el creciente interés en el Mercado Voluntario de Carbono al proporcionar una capacidad de gestión de ciclo de vida digital para créditos de carbono voluntarios, ofreciendo una experiencia de liquidación fluida y segura.
노던 트러스트(Nasdaq: NTRS)가 공식적으로 The Northern Trust Carbon Ecosystem™을 출시했습니다. 이는 기관 구매자가 프로젝트 개발자로부터 탄소 크레딧에 디지털로 접근할 수 있게 해주는 블록체인 기반 플랫폼입니다. 노던 트러스트 매트릭스 제니스를 통해 운영되는 이 플랫폼은 Water Recovery Systems IP 및 CUT Carbon Distributed Technologies AG와의 첫 실제 거래를 완료하며 기관 구매자에게 탄소 크레딧을 판매했습니다.
이 생태계는 직원지본 블록체인 기술을 활용하여 디지털 탄소 크레딧의 직접 구매 및 은퇴를 용이하게 하며, 노던 트러스트가 지정된 수탁자로 활동합니다. 이번 출시는 탄소 크레딧의 디지털 생애 주기 관리 기능을 제공하여 자발적 탄소 시장에 대한 관심이 증가하는 것을 지원하며, 원활하고 안전한 결제 경험을 제공합니다.
Northern Trust (Nasdaq: NTRS) a officiellement lancé The Northern Trust Carbon Ecosystem™, une plateforme basée sur la blockchain qui permet aux acheteurs institutionnels d'accéder numériquement aux crédits carbone des développeurs de projets. La plateforme, alimentée par Northern Trust Matrix Zenith™, a réalisé ses premières transactions en direct avec Water Recovery Systems IP et CUT Carbon Distributed Technologies AG, qui ont vendu des crédits carbone à des acheteurs institutionnels.
L'écosystème utilise une technologie blockchain de registre privé pour faciliter les achats directs et les retraits de crédits carbone numériques, avec Northern Trust agissant en tant que dépositaire désigné. Ce lancement soutient l'intérêt croissant pour le marché volontaire du carbone en fournissant une capacité de gestion du cycle de vie numérique pour les crédits carbone volontaires, offrant une expérience de règlement fluide et sécurisée.
Northern Trust (Nasdaq: NTRS) hat offiziell The Northern Trust Carbon Ecosystem™ gestartet, eine auf Blockchain basierende Plattform, die institutionellen Käufern den digitalen Zugang zu Kohlenstoffzertifikaten von Projektentwicklern ermöglicht. Die Plattform, die von Northern Trust Matrix Zenith™ betrieben wird, hat ihre ersten Live-Transaktionen mit Water Recovery Systems IP und CUT Carbon Distributed Technologies AG abgeschlossen, die Kohlenstoffzertifikate an institutionelle Käufer verkauft haben.
Das Ökosystem nutzt private Ledger-Blockchain-Technologie, um direkte Käufe und Rückführungen digitaler Kohlenstoffzertifikate zu erleichtern, wobei Northern Trust als beauftragter Treuhänder fungiert. Dieser Start unterstützt das wachsende Interesse am freiwilligen Kohlenstoffmarkt, indem es eine digitale Lifecycle-Management-Funktion für freiwillige Kohlenstoffzertifikate bereitstellt und ein nahtloses und sicheres Abrechnungserlebnis bietet.
- Launch of The Northern Trust Carbon Ecosystem™, a blockchain-based platform for institutional carbon credit transactions
- Successful completion of first live transactions on the platform
- Expansion of Northern Trust's digital asset capabilities through Northern Trust Matrix Zenith™
- None.
Insights
The launch of Northern Trust's Carbon Ecosystem marks a significant step in the digitalization of carbon credit trading. This blockchain-based platform could potentially increase liquidity and transparency in the voluntary carbon market, which is important for scaling climate finance. The involvement of institutional buyers suggests growing interest in carbon offsetting among large corporations, potentially driving demand for carbon credits. However, the financial impact on Northern Trust (NTRS) remains to be seen, as revenue streams from this new service are not yet disclosed. Investors should monitor for future updates on transaction volumes and fee structures to gauge the potential contribution to Northern Trust's bottom line.
Northern Trust's Matrix Zenith platform leverages blockchain technology to create a secure and efficient ecosystem for carbon credit transactions. This application of distributed ledger technology (DLT) in environmental markets demonstrates the practical utility of blockchain beyond cryptocurrencies. The system's ability to provide seamless settlement and lifecycle management for digital assets could set a new standard in the carbon credit industry. It's worth noting that Northern Trust's experience with blockchain since 2017 gives them a competitive edge in this space. The platform's asset-agnostic nature also positions Northern Trust to potentially expand into other digital asset markets, which could be a significant growth driver in the evolving financial technology landscape.
The Northern Trust Carbon Ecosystem represents a significant advancement in the voluntary carbon market infrastructure. By connecting institutional buyers directly with project developers, it has the potential to streamline the carbon credit supply chain and reduce intermediary costs. This could lead to more efficient pricing and increased funds flowing to climate projects. However, it's important to ensure that the digitalization of carbon credits doesn't compromise the quality and integrity of the underlying projects. The platform's success will largely depend on the credibility of the carbon credits traded and the rigor of the verification processes in place. As the voluntary carbon market grows, platforms like this could play a pivotal role in scaling climate finance, but careful monitoring of environmental outcomes remains essential.
The Northern Trust Carbon Ecosystem™ is powered by Northern Trust Matrix Zenith™, our digital assets platform which utilizes blockchain technology to support digital asset lifecycle events
The official live transactions were initiated by Water Recovery Systems IP Limited and CUT Carbon Distributed Technologies AG, which sold carbon credits to institutional buyers for retirement.
The live transactions follow Northern Trust’s successful milestone of completing fully automated transactions on the initial minimum viable product, announced in September 2023.
The ecosystem is powered by Northern Trust’s digital assets platform, Northern Trust Matrix Zenith, to connect institutional buyers with project developers focused on climate solutions to avoid, reduce, or remove greenhouse gases in the atmosphere. Supported by private ledger digital blockchain technology, buyers can purchase digital carbon credits directly from project developers and retire these against their emissions footprint. Northern Trust acts on instruction to record, transfer and settle digital carbon credits in its capacity as the designated custodian.
Pete Cherecwich, president of Asset Servicing at Northern Trust, said: “The Northern Trust Carbon Ecosystem supports the growing interest in the Voluntary Carbon Market by providing a digital lifecycle management capability for voluntary carbon credits. The seamless and secure settlement experience is designed to give project developers and institutional buyers confidence in their carbon credit transactions, with Northern Trust as the custodian.”
Northern Trust is working with a number of project developers including: Water Recovery Systems IP Limited, a water purification and membrane technology company based in the
Each project developer completed transactions on the platform, with CUT Carbon Distributed Technologies AG selling digital carbon credits to Adapt Global Limited, a global telecommunications company that empowers circular and sustainable technology solutions.
Christopher Steele, company director, at Water Recovery Systems IP Limited, said: “The Northern Trust Carbon Ecosystem provides us with a set of solutions to securely transact in the Voluntary Carbon Market.”
Ethan Gilmore, co-founder, at CUT Carbon Distributed Technologies AG, said: “CUT Carbon Distributed Technologies AG is incredibly excited to be able to register and settle our carbon credits on Northern Trust's institutional platform and we look forward to bringing more of our inventory to The Northern Trust Carbon Ecosystem.”
Justin Chapman, global head of Digital Assets and Financial Markets, at Northern Trust, said: “The Northern Trust Carbon Ecosystem is just one example of the current and future planned applications of Northern Trust Matrix Zenith - the latest milestone in our asset servicing innovation journey. It supports key digital asset lifecycle events from asset creation, trading, pricing and custody to reporting. Leveraging blockchain technology, Northern Trust Matrix Zenith integrates with our core traditional asset servicing infrastructure to support digital and traditional assets side-by-side.”
Pete Cherecwich added: “Northern Trust Matrix Zenith is an asset- and market-agnostic platform that allows us to support our clients’ digital asset strategies. This gives us flexibility to drive our focused developments in tandem with our broader collaborations with clients and industry stakeholders, helping us explore new opportunities while evolving with the rapidly changing marketplace.”
Northern Trust Matrix Zenith builds on Northern Trust’s extensive experience with blockchain-based systems dating back to the first commercial deployment of blockchain technology for the private equity market in 2017, collaborating with BondEvalue to deliver integrated fractionalized ownership of fixed-income bonds (2019) for the BondbloX platform followed by partnering in the launch of institutional grade crypto asset custodian Zodia Custody (2020/21).
Northern Trust Matrix Zenith is part of Northern Trust’s Digital Assets and Financial Markets group which combines the teams responsible for supporting the fast-growing digital asset markets and those dedicated to providing market access and insights across the traditional securities services markets. Further transactions on the platform are planned for later in 2024.
The Northern Trust Carbon Ecosystem is offered through The Northern Trust Company,
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in
Northern Trust Corporation, Head Office: 50 South La Salle Street,
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Camilla Greene
+44 (0) 20 7982 2176
Camilla_Greene@ntrs.com
US &
John O’Connell
+1 312 444 2388
John_O’Connell@ntrs.com
Source: Northern Trust Corporation
FAQ
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