Northern Trust has announced its participation in Project Ensemble, a key initiative by the Hong Kong Monetary Authority (HKMA), aimed at developing a framework for cross-border trading of tokenised voluntary carbon credits. The collaboration seeks to explore mechanisms by which international investors can access these digital environmental assets via Hong Kong’s evolving tokenisation ecosystem.
At the heart of Northern Trust’s involvement is its proprietary Carbon Ecosystem™—a fully digital platform supporting the end-to-end lifecycle of carbon credit transactions using private blockchain technology. As the designated custodian, the firm will facilitate the recording, transfer, and settlement of digital carbon credits as part of the project’s pilot phase.
Project Ensemble, launched in 2024, is intended to bolster Hong Kong’s role as a global centre for digital asset innovation. Its testing ground, the Ensemble Sandbox, is currently trialling use cases in green and sustainable finance, with Northern Trust among a select group of industry leaders participating in carbon market pilots.
Formally introduced in September 2024, the Northern Trust Carbon Ecosystem connects institutional buyers with climate-focused project developers, enabling direct purchases and retirements of verified carbon credits—whether for carbon removal or avoidance—on a transparent digital ledger.
Commenting on the initiative, Justin Chapman, Group Head of Strategic Partnerships, Digital Assets and Financial Markets at Northern Trust, said the firm’s involvement signifies a strategic alignment of digital innovation and climate action. “By collaborating with peers and regulators in Hong Kong, we are helping to shape the infrastructure for global sustainable finance,” he said.
Angelo Calvitto, Head of Asia Pacific at Northern Trust, added that Hong Kong’s leadership in financial and digital innovation makes it an ideal setting for advancing tokenised markets. “Our participation in Project Ensemble reinforces our commitment to driving the future of sustainable finance across APAC and beyond,” he noted.
