Northern Trust has announced the launch of The Northern Trust Carbon Ecosystem, a blockchain-based platform that allows buyers to digitally access carbon credits from project developers.
The first five live transactions were initiated by Water Recovery Systems and CUT Carbon Distributed Technologies, which sold carbon credits to institutional buyers for retirement.
The ecosystem is powered by Northern Trust’s digital assets platform, Northern Trust Matrix Zenith, to connect institutional buyers with project developers focused on climate solutions to avoid, reduce, or remove greenhouse gases in the atmosphere.
Supported by private ledger digital blockchain technology, buyers can purchase digital carbon credits directly from project developers and retire these against their emissions footprint.
The live transactions follow Northern Trust’s successful milestone of completing fully automated transactions on the initial minimum viable product, announced in September 2023.
Pete Cherecwich, president of Asset Servicing at 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 the custodian.”
