Asset manager Northern Trust has launched a blockchain-based platform that gives institutional buyers digital access to carbon credits.
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The Northern Trust Carbon Ecosystem is powered by the company’s digital asset platform, Matrix Zenith, to connect institutional buyers with project developers focused on climate solutions to prevent, reduce or remove greenhouse gases in the atmosphere.
Using digital blockchain technology “private ledger,” buyers can purchase carbon credits directly from project developers and offset them against their emissions footprint. Northern Trust acts upon instructions to collect, transfer and settle digital carbon credits in its capacity as designated custodian.
The first live transactions have now been initiated by Water Recovery Systems IP and CUT Carbon Distributed Technologies, which sold retirement loans to institutional buyers.
Pete Cherecwich, President, Asset Servicing, 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 custodian.”