From Hype to Backbone Infrastructure: The New Rise of Carbon Tokenization

Aug 29

3 min read

Tokenization is back on the agenda in the carbon markets – but why now, and what does it mean for market players? Let’s explore this trend.

The Rise of Real-World Asset (RWA) Tokenization

Across financial markets, tokenization of real-world assets (RWAs) is being hailed as one of the biggest shifts in market infrastructure. Roland Berger estimates that the RWA market could exceed $10 trillion by 2030—up from just ~$25 billion today. That’s exponential growth, and it’s not slowing down.

This transformation of traditional financial markets is phenomenal, rivaled only by AI as one of the defining megatrends of this decade.

Why is it happening at such speed and scale? Because tokenization delivers a mix of efficiency and access that traditional markets have struggled with for decades:

Faster settlements through near-instant, 24/7 blockchain transactions
Lower costs by reducing reliance on intermediaries
Fractional ownership, enabling broader participation in assets such as real estate, fine art, or precious metals once reserved for large investors
Transparency and trust, thanks to immutable records on distributed ledgers

In short, tokenization brings the efficiency of blockchain to traditionally illiquid, hard-to-access asset classes.

Most headlines focus on tokenized real estate, debt, treasuries, or funds. But beneath the radar, the carbon markets are beginning to catch up.

Carbon Tokenization Back in the Spotlight

In the past few months, several major players have made bold moves:

Verra and S&P Global Commodity Insights announced a partnership to launch an updated registry powered by S&P Global’s customizable Environmental Registry software. Integrated with the Meta Registry®—digital infrastructure based on distributed ledger technology (essentially blockchain)—this system is designed to connect registries globally, reduce double counting, and enable seamless trading through APIs.
J.P. Morgan’s Kinexys is piloting tokenization of carbon credits at the registry layer together with EcoRegistry, the International Carbon Registry, and S&P Global. Their goal: a globally interoperable tokenized carbon ecosystem with greater transparency, trust, and liquidity.
DevvStream has launched a crypto treasury strategy with Bitcoin and Solana—positioning itself to connect carbon markets with blockchain-based financial infrastructure and scale tokenization of environmental assets.

And let’s not forget: Carbonmark, EcoRegistry, and ICR have been working with blockchain back-ends for years. What was once an experiment is now becoming critical market infrastructure.

The Moment Is Now

So why is tokenization gaining traction in the carbon markets again?

Because the pain points remain the same—fragmentation, lack of transparency, slow settlement, and high transaction costs. These are exactly the challenges blockchain is built to solve.

The difference in 2025 is that tokenization is no longer just hype. With standards bodies, major financial institutions, and infrastructure providers now building at scale, tokenization is becoming practical, de-risked, and ready to serve as the backbone of the next phase of carbon market growth.

And the timing couldn’t be more critical. The climate crisis demands fast, trusted, and scalable solutions—and blockchain is one of the few technologies that can deliver them at market scale.

Want to Go Deeper?

We explore these dynamics in depth in the Carbonmark's 2025 Report, "Leveraging Blockchain for Scalable Climate Finance."

In the report, we break down:

How blockchain is evolving from a niche innovation to a core market enabler
The role of tokenization in unlocking liquidity, trust, and efficiency in carbon markets
How climate finance can scale by integrating blockchain with digital monitoring, reporting, and verification (dMRV) systems
Case studies of early movers already building this infrastructure