Global Financial Titans Implement Blockchain in Large-Scale Test with Canton Network
Summary:
Renowned financial institutions including Goldman Sachs Group Inc., BNY Mellon, and Cboe Global Markets, have successfully utilized blockchain technology in an extensive trial, executing over 350 simulated transactions via Digital Asset Holdings' Canton network across various sectors. This network, established in March 2023, provides a privacy-enabled interoperable blockchain infrastructure for institutional investors, facilitating real-time movement of regulated assets, data, and cash. The recent surge of interest in tokenization was also highlighted, including moves by UBS' Hong Kong subsidiary and soccer legend Lionel Messi.
Leading financial institutions, such as Goldman Sachs Group Inc., BNY Mellon, and Cboe Global Markets, have successfully carried out an extensive trial, applying blockchain technology. As per a report on Bloomberg dated March 12, over 350 simulated transactions were executed by institutional investors utilizing distributed ledger technology on Digital Asset Holdings' Canton network. These transactions spanned various sectors, including tokenized assets, fund registry, digital cash, repo, securities lending, and margin management. The trial involved a total of 15 asset managers, 13 banks, four custodians, three exchanges, and Paxos Trust, an issuer of stablecoin.
On the same day, Canton Network's announcement indicated that 155 participants from 45 leading organizations have demonstrated successful settlements across 22 permissioned blockchains bridged to its ledger. It was stated, "For four days, participants were invited to try out 22 dApps, which included five fund registries, five cash registries, three bond registries, three trading, four margin, and two financing apps. These were used to conduct exchanges of tokenized securities, money market funds, and deposits across different applications."
Launched in March 2023, Canton Network is a privacy-focused interoperable blockchain network purposed for institutional investors. It enables financial institutions to transfer regulated assets, data, and cash among themselves instantaneously.
Developers explained, "On Canton Network, both a digital bond and a digital payment can be composed into a single atomic transaction across two separate applications. This guarantees a simultaneous exchange with no operational risk." They added, "Similarly, a digital asset could be linked to a repo or leveraged loan application for usage in a collateralized financial transaction."
Current participants of the Canton Network include companies like Deloitte, Deutsche Börse Group, Microsoft, Moody’s, and S&P Global.
In the past year, the concept of tokenization has seen significant excitement from both institutional investors and prominent celebrities. For instance, on February 7, UBS’ subsidiary in Hong Kong tokenized an options call warrant of Chinese smartphone titan Xiaomi’s shares on Ethereum in collaboration with local crypto exchange OSL. Shortly after, internationally-renowned footballer Lionel Messi released a tokenized product in association with Join The Planet, the environmental nonprofit organization behind the creation of the PLANET token.
Published At
3/12/2024 6:14:53 PM
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