Northern Trust on Tuesday said that it had completed the first stage toward an industry-wide voluntary carbon credit ecosystem that would allow institutional buyers to digitally access carbon credits from leading project developers.

The Chicago-based investment bank said its ecosystem utilises private ledger digital blockchain technology to connect institutional buyers with carbon credit suppliers focused on solutions to reduce greenhouse gases such as carbon dioxide.

The fully digital platform also allows purchasers to transact tokenised carbon credits directly with project developers and retire these against their carbon footprint, it added.

“This new development from Northern Trust’s Digital Assets and Financial Markets team represents a significant milestone toward delivering a market-leading platform able to support a diverse range of digital assets,” said Pete Cherecwich, president of Asset Servicing at Northern Trust.

He added that allowing its institutional clients to access carbon credits and “doing its part” to help these firms along their carbon offsetting journey was important for the future.

J.P Morgan Securities Services launched a comparable sustainable investment data product for institutional investors in June.

Partnering with data providers including Morningstar, Bloomberg and S&P Global, J.P. Morgan said new product was set to give users technology-enabled normalisation, management, and calculation capabilities which will streamline their ability to perform analysis, scoring, stock-selection, compliance monitoring, and reporting functions.

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