Digital Asset Completes Successful Test of Canton Network with Goldman Sachs, BNY Mellon and Others.

.. By Nathan Daniels

March 15, 2024

2 min read

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Canton Network Test Completion

Digital Asset, a leading provider of financial blockchain solutions, has successfully concluded a test of its Canton Network, a blockchain-based platform designed for seamless asset transactions and settlement. The pilot project involved the participation of several prominent financial institutions, including Goldman Sachs, BNY Mellon, DRW, Oliver Wyman, and Paxos.

Participation and Scope

The Canton pilot engaged a wide array of industry players, including 15 asset managers, 13 banks, four custodians, and three exchanges. Participants utilized the network to transact and settle tokenized assets, managing activities such as fund registry, digital cash, repo, securities lending, and margin management transactions.

Benefits and Achievements

Through the Canton Network, participants were able to execute over 350 simulated transactions, demonstrating the capability of interoperable applications to facilitate secure, atomic transactions across various segments of the capital markets value chain. Digital Asset highlighted the potential benefits of the network, including the reduction of counterparty and settlement risk, optimization of capital, and facilitation of intraday margin cycles.

Focus on Enterprise Blockchain

The growing interest in enterprise blockchain solutions reflects a renewed emphasis on tokenization, which involves converting existing financial assets into blockchain-based tokens. Canton enables previously isolated financial systems to connect and synchronize in ways that were previously unattainable, all while adhering to regulatory standards.

CEO Statement

Yuval Rooz, CEO of Digital Asset, underscored the significance of Canton in enabling unprecedented connectivity within the financial sector while ensuring compliance with regulatory requirements. Canton’s ability to bridge disparate financial systems marks a significant advancement in the realm of enterprise blockchain solutions.

Additional Participants

In addition to the key industry players mentioned, the Canton pilot included several other notable participants such as abrdn, Baymarkets, BNP Paribas, BOK Financial, Cboe Global Markets, Commerzbank, DTCC, FiĆ¹tur, Generali Investments, Harvest Fund Management, IEX, Nomura, Northern Trust, Pirum, Standard Chartered, State Street, Visa, and Wellington Management. Deloitte served as an observer, while Microsoft provided support as a partnering partner.

Advancing Financial Infrastructure

The successful completion of the Canton Network test represents a significant milestone in the evolution of financial infrastructure. As industry leaders continue to explore the potential of blockchain technology, solutions like Canton offer promising avenues for enhancing efficiency, reducing risk, and fostering greater collaboration within the financial ecosystem.