The pilot of the Canton Network, a pioneering initiative for interoperability in the capital markets domain, saw significant participation from leading financial institutions, including 15 asset managers, 13 banks, four custodians, and three exchanges.
Among the banks were major players like BNY Mellon, Goldman Sachs, BNP Paribas, and Standard Chartered (NASDAQ: SCBFF). Key asset managers involved in the trial included giants such as State Street and Wellington Capital.
The pilot also featured participation from the IEX exchange, the settlement colossus DTCC, the payments titan Visa, and the renowned stablecoin issuer Paxos Trust.
This first-of-its-kind program, facilitated by Digital Asset and its partners, demonstrated the seamless interoperability of twenty-two independent distributed ledger applications (dApps) within the capital markets, executing over 350 simulated transactions.
The successful completion of the pilot highlighted the potential of an interconnected network of applications to conduct secure, atomic transactions across various segments of the capital markets value chain, emphasizing the reduction of counterparty and settlement risks, optimization of capital, and the facilitation of intraday margin cycles.
The Canton Network TestNet provided distributed ledger applications for a wide range of financial services, including asset tokenization, fund registry, digital cash, repos, securities lending, and margin management, all designed to interoperate within the network.
The simulated transactions confirmed the capability for real-time settlement and immediate reconciliation across counterparty systems, all while complying with stringent regulatory standards for asset control, security, and data privacy.
Yuval Rooz, CEO and Co-Founder of Digital Asset, underscored the importance of this pilot as a milestone for the Canton Network, highlighting its role in connecting financial systems in new, regulatory-compliant ways.
The initiative is poised to identify further use cases where the Canton Network can be applied, paving the way for innovations that could reshape the financial industry.
The Canton Network’s unique public-permissioned structure was developed to overcome previous barriers to leveraging blockchain technology, such as the trade-off between interoperability and privacy.
It ensures participant privacy and allows firms to maintain control over their applications’ performance, with transactions validated by a predefined set of nodes, thereby offering a revolutionary approach to achieving interoperability and synchronization in the highly regulated environment of institutional finance.