Digital Asset’s Canton Network completes first trial with global banking heavyweights
Major players across banking and capital markets have completed a four-day pilot of the Canton Network to test how interoperable distributed ledger applications (dApps) can leverage blockchain technology to complete atomic transactions.
Canton Network completes four-day trial
The trial brought together 155 participants from 15 asset managers, 13 banks, four custodians, three exchanges and one financial market infrastructure provider, with notable firms including BNY Mellon, BNP Paribas, Standard Chartered, Goldman Sachs, Broadridge and Oliver Wyman, among others.
Together, they leveraged 22 dApps – comprising of fund, cash and bond registries and trading, margin and financing solutions – to execute over 350 simulated transactions for asset tokenisation, fund registry, digital cash, repo, securities lending and margin management.
According to a statement from Digital Asset Holdings, which developed and launched the Canton Network in May 2023, the success of these transactions showed how the network could “reduce counterparty and settlement risk, optimise capital and enable intraday margin cycles”.
The firm adds that the dApps demonstrated proficiency in achieving real-time settlement and immediate reconciliation across counterparty systems, while also complying with asset control, security and data privacy regulations.
New York-headquartered Digital Asset claims the network serves as the industry’s “first privacy-enabled interoperable blockchain”, capable of eliminating “the shortfalls of existing smart-contract blockchain networks”, namely in the arenas of data privacy and control.
Yuval Rooz, CEO and co-founder of Digital Asset, says the network “allows previously siloed financial systems to connect and synchronise in previously impossible ways while abiding by the current regulatory guardrails”, adding that the completion of the recent pilot “marks an important milestone” in its development.
