New Global Blockchain Network of Networks for Financial Market Participants and Institutional Assets
The privacy-enabled Canton Network allows previously siloed systems in finance to be interoperable and synchronized in previously impossible ways, unlocking new efficiencies and innovation.
Firms including BNP Paribas, Deutsche Börse Group, EquiLend, and Goldman Sachs, among others, already use Canton; industry partners include Capgemini, Deloitte, IntellectEU, Microsoft, and Umbrage.
Digital Asset and leading market participants announce their plans to launch the Canton Network, the industry’s first privacy-enabled interoperable blockchain network designed for institutional assets and built to responsibly unlock the potential of synchronized financial markets. Canton Network participants include 3Homes, ASX, BNP Paribas, Broadridge, Capgemini, Cboe Global Markets, Cumberland, Deloitte, Deutsche Börse Group, Digital Asset, The Digital Dollar Project, DRW, Eleox, EquiLend, FinClear, Gambyl, Goldman Sachs, IntellectEU, Liberty City Ventures, Microsoft, Moody’s, Paxos, Right Pedal LendOS, S&P Global, SBI Digital Asset Holdings, Umbrage, Versana, VERT Capital, Xpansiv, and Zinnia.
The Canton Network will provide a decentralized infrastructure that connects independent applications built with Daml, Digital Asset’s smart-contract language. It creates a ‘network of networks’, allowing previously siloed systems in financial markets to interoperate with the appropriate governance, privacy, permissioning and controls required for highly regulated industries. The Canton Network enables financial institutions to experience a safer and reconciliation-free environment where assets, data, and cash can synchronize freely across applications. This creates opportunities for financial institutions to offer new innovative products to their clients while enhancing their efficiency and risk management.
For example, asset registers and cash payment systems are distinct and siloed systems in today’s markets. With the Canton Network, a digital bond and a digital payment can be composed across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk. Likewise, a digital asset could be used in a collateralized financial transaction via connection to a repo or leveraged loan application.
Capturing the benefits of public blockchains without the flaws
Until now, smart contract blockchain networks have not achieved meaningful adoption among financial institutions and other enterprises because of three significant shortfalls:
- The lack of privacy and control over data: other chains have shortcomings around privacy that prevent the use of the technology by multiple regulated participants on the same network. There are currently no other blockchains that can offer data protection or control at any layer of its network.
- Other blockchains have had to accept trade-offs between control and interoperability: other chains require operators to forfeit their full control of applications by using a shared pool of validators to gain interoperability.
- The inability to scale: with applications competing for global network resources and the inherent capacity limitations caused by how public blockchains operate, achieving the scale and performance financial institutions need remains challenging.
The Canton Network removes these obstacles by uniquely balancing the decentralization of a network with privacy and control essential to operating within a safe and sound regulatory environment. Only the Canton Network enables participants to safeguard permissions, exposure, and interactions across the network, to comply with security, regulatory and legal requirements.
The network can connect innovative blockchain solutions in market today, such as Deutsche Börse Group’s D7 post-trade platform and Goldman Sachs’ GS DAP™, while retaining privacy and permissioning. As more Daml-built applications go into production this year and beyond, the number of connections on the Canton Network will grow exponentially. For example, one application’s monthly notional traded exceeds the most active crypto token volumes.
Canton Network participants will begin testing interoperability capabilities across a range of applications and use cases in July.
Notes to the editor
Here is what market participants have to say about the Canton Network.
“The Canton Network is another example of Capgemini and our partners harnessing the power of blockchain to build a financial ecosystem that everyone can depend on. This global blockchain network will revolutionize the way institutional assets transact by creating a safe system and trusted corridor.”
Sankar Krishnan, Head of Digital Assets and FinTech at Capgemini
“At Cboe, we believe the tokenization of real world assets may offer an unprecedented opportunity to create new market infrastructure and drive efficiency in the trading of products across the globe. By leveraging new blockchain technologies, we can potentially unlock new opportunities for market participants. Efforts like the Canton Network will help our industry further explore this frontier.”
Cathy Clay, Executive Vice President, Global Digital and Data Solutions, Cboe Global Markets
“The Canton Network is a powerful answer to industry calls for a solution that harnesses the potential of blockchain while preserving fundamental privacy requirements for institutional finance. This unique approach, coupled with the ability to execute an atomic transaction across multiple smart contracts, is the building block needed to bring these workflows on chain. DRW is proud to have participated in the founding of Digital Asset and today is excited to see this transformative project come online.”
Chris Zuehlke, Partner at DRW and Global Head of Cumberland
“Deloitte’s Advisory and Consultancy teams are committed to providing their deep experience in deploying interconnected applications across the Canton Network. We are proud to support Digital Asset in serving institutions that are reinventing the industry through tokenization of assets, facilitating rapid cross-organizational settlement, creating new marketplaces, establishing an immutable record of shared data, and facilitating secure transactions across the Canton Network. This blockchain network marks the first of its kind, and we are thrilled to collaborate with global leaders embarking on a more connected and efficient future for financial services.”1
Joseph Cody, principal, Deloitte Consulting LLP
“The Canton Network vision strives to enable seamless connectivity across various blockchain networks in the industry. Such solutions are a key building block for future digital and distributed financial market infrastructures.”
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Deutsche Börse Group
“We are proud to be a founding participant of the Canton Network. For the first time, financial institutions can realize the full benefits of a global blockchain network while operating within the regulatory guardrails that ensure a safe, sound, and fair financial system. This is a significant step forward for the blockchain space. We look forward to helping this founding group of network operators and users build and connect applications to the Canton Network.”
Yuval Rooz, Co-Founder and CEO at Digital Asset
“We strongly believe that for a digital currency to be widely adopted, it should possess the same fundamental characteristics as fiat currency, such as security, scalability, and stability. We are pleased to see that the Canton Network’s technical approach to privacy aligns with our values and look forward to exploring the potential of their platform.”
Jennifer Lassiter, Executive Director, The Digital Dollar Project
“By providing a shared network of trust and transparency, the Canton Network enables participants to leverage the power of decentralized technology, access new markets, and drive innovation. Our transformative 1Source initiative, which we are building on the Canton ledger, will serve as a single source of truth for securities finance transactions and will be available to all participants, vendors and market infrastructures globally. The result will be a more efficient, interoperable and future-proof securities finance market.”
Ken DeGiglio, Chief Information Officer, EquiLend
“At Eleox, we are digitizing the energy commodities’ post-trade processes, utilizing distributed ledger technology. The Canton Network will bring a level of transparency, security, immutability, and efficiency to our platform that will transform our customers’ current manual post-trade processes.”
Matthew Almy, Chief Executive Officer, Eleox
“The Canton Network is an important piece of global financial infrastructure that effectively addresses a critical gap in the blockchain market. Digital Asset continues to innovate with Daml to move the industry forwards.”
David Ferrall, FinClear Founder and Group CEO
“As a global company specializing in emerging technologies within financial services, such as Blockchain and DLT, IntellectEU is excited to be supporting the launch of the Canton Network. We believe that the network will drive further traction and transform the way businesses operate, leveraging network effects and interoperability. As such, we have enhanced our flagship product, Catalyst Blockchain Manager, to support the Canton Network — adding to the existing state of the art solutions we already enable for finance.”
Hanna Zubko, Co-Founder and CEO IntellectEU Inc
“The Canton Network has the power to generate new economic opportunities and fundamentally reshape industries. We are thrilled to be a part of this dynamic network and are eager to enable our portfolio companies to safely and securely build cutting-edge applications on the platform.”
Emil Woods, Founding Partner, Liberty City Ventures
“We are excited to be a supporting partner of the Canton Network. We look forward to helping the financial community build and scale cloud enabled Web3 applications on Azure while harnessing the power of AI to improve the user experience and drive developer adoption.”
Rashmi Misra, GM AI & Emerging Technologies, Business Development at Microsoft
“At LendOS, we are building a modern platform that will redefine critical market infrastructure in lending. When selecting technology, we think about current needs while planning for where clients and market forces will take us in the future. We chose Daml and the Canton Network because they offer essential qualities such as privacy while affording us the freedom to rapidly evolve.”
John Olesky, CEO, Right Pedal LendOS
“We look forward to the promise of an interconnected network of trusted financial institutions utilizing DLT technology provided by Digital Asset and to the efficiencies and new possibilities that derive from it.”
Fernando Vazquez Cao, CEO of SBI Digital Asset Holdings
“Our enthusiasm is robust as we leverage the Canton Network to collaborate with the world’s largest institutions to design, develop and deliver digital applications that can connect through an innovative blockchain network. This network will be the catalyst for regulated financial institutions to operate together on a grand scale.”
Will Womble, CEO, Umbrage
“In the future, the VERT platform for rural credit financing across the Brazilian market will leverage the Canton Network to enable greater market participation with global financial institutions.”
Martha de Sá, CEO of VERT
“Sharing real-time data updates across the insurance value chain, while safeguarding sensitive information and ensuring scalability to accommodate a fast-growing digital marketplace, is essential for success. The Canton Network’s capacity to facilitate powerful connections across the value chain is a critical factor for us, and we are excited about its potential benefits.”
Michele Trogni, Chief Executive Officer of Zinnia and Operating Partner at Eldridge
About the Canton Network
The Canton Network is the financial industry’s first privacy-enabled interoperable blockchain network designed for institutional assets, launched by a group of leading financial institutions, infrastructure providers, technology firms, and consultants on 9 May 2023. The Canton Network’s design overcomes the shortfalls of existing smart-contract blockchain networks and enables previously siloed systems in finance to become interoperable and synchronized in ways that had been impossible before. Offering the privacy and controls required for highly regulated organizations, the Canton Network creates a safe and sound environment in which assets, data, and cash can move freely across applications in real time, unlocking new efficiencies and powering innovation. To learn more about the Canton Network, please visit us at www.canton.network. Click here to follow us on LinkedIn and Twitter.
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