Nasdaq (NDAQ) has introduced an innovative technology designed to securely digitize the issuance, settlement, and custody of carbon credits. This technology will be made available to global market infrastructures, registry platforms, and other service providers.

The new technology from Nasdaq aims to facilitate the growth and institutionalization of global carbon markets. The current carbon credit operating model, characterized by bilateral trading and manual processes, has limitations in scalability and lacks standardization. Nasdaq’s solution addresses these challenges, paving the way for increased capital flows into the market.

Nasdaq has launched groundbreaking technology for secure digitization of carbon credits issuance, settlement, and custody. This innovation supports the development of global carbon markets by providing a standardized, auditable ecosystem for digital carbon credits, enhancing liquidity and scalability in the market.

The new service by Nasdaq will leverage smart contract technology to automate asset servicing and settlement processes, improving efficiency and transparency in the carbon credit market. It enables secure creation, processing, and tracking of rights, obligations, and ownership throughout the trade lifecycle, offering a digital solution to overcome obstacles in industries with paper-based and manual workflows.

Nasdaq’s new service provides flexible integration options with existing financial system architectures, allowing deployment as a standalone platform or integration with payment networks. It offers infrastructure optionality, supporting deployment on a centralized database or using private blockchain technology. This approach enables infrastructure providers to seamlessly serve traditional markets and explore growth opportunities in carbon markets without significant cost associated with major change programs.

Nasdaq announces technology partnership with Puro.earth
Nasdaq has formed a technology partnership with Puro.earth, a leading standards and registry platform for engineered carbon removal. This collaboration aims to register CO2 Removal Certificates (CORCs) on the Nasdaq platform. The registry will track the issuance, retirement, and transfer of these assets, ensuring full traceability and transparency to prevent double counting in carbon removal projects.

Antti Vihavainen, CEO of Puro.earth, added: “By leveraging Nasdaq’s technology, the core part of our carbon crediting infrastructure, the Puro Registry will be modernized. The system will become available for carbon marketplaces and exchanges through the Puro Connect API and will also have the preparedness for labeling CORCs compliant with Article 6 of the Paris Agreement.”

Puro.earth’s Puro Standard, the initial carbon removal standard for engineered carbon removal methods in the voluntary carbon market, includes rigorous carbon removal methodologies aligned with the Intergovernmental Panel on Climate Change definition. Suppliers and their certified carbon removals undergo verification by an independent third-party. CORCs can be purchased by companies aiming to offset their carbon footprint directly from suppliers or through a third-party marketplace.

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