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Nasdaq brings blockchain to carbon credit ecosystem

Despite US setback, Nasdaq is ready to collaborate with European regulators to address market challenges.

Nasdaq brings blockchain to carbon credit ecosystem

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Nasdaq, the largest US stock exchange, has decided to repurpose its blockchain technology developments following the discontinuation of its plans to launch a custodian business for digital assets in the US due to regulatory concerns. Despite this setback, Nasdaq remains focused on expanding its technology services related to tokenized assets.

Nasdaq’s new strategy involves using its blockchain technology to develop carbon markets. The goal is to establish an institutional-grade, end-to-end technology platform that powers digital assets and supports markets like carbon.

“We’re still going to launch it, but as a technology service,” said Tal Cohen, co-president of Nasdaq.

This technology will enable market operators and registries to create standardized digital credits and distribute them with full auditability throughout the transaction lifecycle. Nasdaq has also developed a carbon taxonomy framework that can readily incorporate new types of credit as the market evolves.

Cohen also expressed Nasdaq’s readiness to collaborate with European legislators to address the region’s market challenges:

“In Europe, I think you’re facing structural issues around tax regimes, onerous regulations, a lot of fragmentation, complexity. We have a big franchise in Europe; we’re willing to take that call and talk to them about how we can help in Europe” Cohen stated.

By venturing into the development of carbon markets, Nasdaq aims to position itself as a leader in an increasingly vital emerging sector like asset tokenization. This initiative also showcases the versatility of blockchain technology, extending its potential far beyond the realm of cryptocurrencies.

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