BNP Paribas, Goldman Sachs, and Deutsche Börse Group are among several financial market participants supporting an initiative to create an interoperable blockchain network designed for institutional asset trading.
Referred to as a ‘network of networks,’ the Canton Network aims to address the limitations of current smart-contract blockchain networks, enabling previously siloed financial systems to become interoperable and synchronized, and fostering the development of new streamlined marketplaces.
Participants in the Canton Network 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 Network will offer decentralized infrastructure that connects independent applications created with Daml, Digital Asset’s smart-contract language. By leveraging this Network, financial institutions can create a reconciliation-free environment where assets, data, and cash can synchronize seamlessly across applications.
For example, in today’s markets, asset registers and cash payment systems operate as distinct and siloed systems. With the Canton Network, a digital bond and a digital payment can be composed across two separate applications into a single atomic transaction, ensuring simultaneous exchange without operational risk. Additionally, a digital asset could serve as collateral in a financial transaction by connecting to a repo or leveraged loan application.
The Network is also expected to link existing blockchain solutions, such as Deutsche Börse Group’s D7 post-trade platform and Goldman Sachs’ GS DAP, while ensuring privacy and permissioning.
Jens Hachmeister, head of issuer services and new digital markets at Deutsche Börse Group, stated, “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.”