Asset servicer Northern Trust has launched a blockchain-based platform that allows institutional buyers to access carbon credits digitally.
The Northern Trust Carbon Ecosystem utilizes the firm’s digital assets platform, Matrix Zenith, to connect institutional buyers with project developers focused on climate solutions aimed at avoiding, reducing, or removing greenhouse gases from the atmosphere. This platform leverages private ledger digital blockchain technology, enabling buyers to purchase carbon credits directly from project developers and retire them against their emissions footprint. Northern Trust serves as the designated custodian, recording, transferring, and settling digital carbon credits based on specific instructions.
The platform has already facilitated its first live transactions, with Water Recovery Systems IP and CUT Carbon Distributed Technologies selling credits to institutional buyers for retirement.
Pete Cherecwich, president of asset servicing at Northern Trust, stated, “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 aims to instill confidence in carbon credit transactions for both project developers and institutional buyers, with Northern Trust acting as the custodian.”