Post-trade body Euroclear and blockchain firm Digital Asset have initiated the first phase of the tokenised collateral mobility initiative for the Canton Global Collateral Network (GCN).
Established by Digital Asset with input from financial institutions, infrastructure providers, and technology firms, the Canton Network is an interoperable blockchain network focused on institutional assets, equipped with privacy features.
The initial phase of the Euroclear initiative will explore how Euroclear’s extensive collateral management experience can be utilized within the digital and cryptocurrency markets via the Canton Network. The goal is to engage industry participants in creating a roadmap that illustrates how the mobility of tokenised collateral can boost efficiency across global markets, as well as how collateral and margin management services for crypto derivatives can accommodate the demands of 24/7 trading and settlement.
Kelly Mathieson, chief business development officer at Digital Asset, stated: "The Global Collateral Network has the potential to revolutionise collateral management by enabling real-time, compliant, and interoperable asset mobility across both traditional finance and digital markets. This is a significant step toward unlocking the full potential of tokenisation across new crypto capital markets."
In the previous year, Euroclear, Digital Asset, and the World Gold Council successfully completed a gold tokenisation pilot.