Canton Network completes blockchain pilot
15 March 2024 UK
Image: 1st_footage/stock.adobe.com
The Canton Network pilot has now been completed by a number of market participants, including financial technology and services firm Digital Asset, Pirum, Commerzbank and BNP Paribas.
The programme demonstrates the interoperability of 22 independent distributed ledger applications in the capital markets domain, achieving the execution of more than 350 simulated transactions.
According to the Canton Network, the pilot showcased the potential benefits of using such a network to reduce counterparty and settlement risk, optimise capital and enable intraday margin cycles.
Pilot participants were provided with distributed ledger applications for asset tokenisation, fund registry, digital cash, repo, securities lending and margin management transactions — all with the ability to interoperate via the Canton Network TestNet.
The four-day-long pilot brought together 15 asset managers, 13 banks, four custodians, three exchanges, and one financial market infrastructure provider participating in the simulated transactions or demonstrations.
The Canton Network says the pilot showed the potential of the network to “reduce costs, risks and inefficiencies, while striving to meet regulatory requirements for the issuance, transfer and settlement of tokenised traditional assets”.
Institutions with blockchain applications in production, including BNY Mellon, Broadridge, DRW, EquiLend, Goldman Sachs, Oliver Wyman and Paxos, provided market expertise for the working group throughout the programme.
Digital Asset provided the technology and guidance to support the pilot and is one of the technology and infrastructure providers for the Canton Network.
Commenting on the milestone, Yuval Rooz, CEO and co-founder of Digital Asset, says: “The pilot programme marks an important milestone for the Canton Network. Canton allows previously siloed financial systems to connect and synchronise in previously impossible ways while abiding by the current regulatory guardrails.
“We look forward to working with the pilot participants to continue identifying additional use cases where the Canton Network can be leveraged.”
The Canton Network launched as the “industry’s first” privacy-enabled interoperable blockchain network in May 2023.
The programme demonstrates the interoperability of 22 independent distributed ledger applications in the capital markets domain, achieving the execution of more than 350 simulated transactions.
According to the Canton Network, the pilot showcased the potential benefits of using such a network to reduce counterparty and settlement risk, optimise capital and enable intraday margin cycles.
Pilot participants were provided with distributed ledger applications for asset tokenisation, fund registry, digital cash, repo, securities lending and margin management transactions — all with the ability to interoperate via the Canton Network TestNet.
The four-day-long pilot brought together 15 asset managers, 13 banks, four custodians, three exchanges, and one financial market infrastructure provider participating in the simulated transactions or demonstrations.
The Canton Network says the pilot showed the potential of the network to “reduce costs, risks and inefficiencies, while striving to meet regulatory requirements for the issuance, transfer and settlement of tokenised traditional assets”.
Institutions with blockchain applications in production, including BNY Mellon, Broadridge, DRW, EquiLend, Goldman Sachs, Oliver Wyman and Paxos, provided market expertise for the working group throughout the programme.
Digital Asset provided the technology and guidance to support the pilot and is one of the technology and infrastructure providers for the Canton Network.
Commenting on the milestone, Yuval Rooz, CEO and co-founder of Digital Asset, says: “The pilot programme marks an important milestone for the Canton Network. Canton allows previously siloed financial systems to connect and synchronise in previously impossible ways while abiding by the current regulatory guardrails.
“We look forward to working with the pilot participants to continue identifying additional use cases where the Canton Network can be leveraged.”
The Canton Network launched as the “industry’s first” privacy-enabled interoperable blockchain network in May 2023.
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