Applications and Use Cases

Canton Network Breaks Down Silos in Financial Markets

May 16, 2023

The financial sector and enterprises actively explore and implement smart contract blockchain networks simply because these networks offer efficiency, cost-savings and transparency. However, the adoption of smart contract blockchain networks by financial institutions and enterprises is hindered due to three significant challenges

Existing blockchain networks lack sufficient privacy measures, making it difficult for multiple regulated participants to utilize the technology on the same network. Operators are required to relinquish full control of their applications by utilizing a shared pool of validators to achieve interoperability. As applications vie for global network resources and public blockchains face inherent capacity limitations, meeting the scale and performance requirements of financial institutions remains a significant challenge.

These limitations dampen the widespread adoption of smart contract blockchain networks within the financial sector and other enterprises. Blockchain technology provider Digital Asset and other market participants put their heads together to come up with a solution to overcome these obstacles.

The result? Canton Network, a privacy-enabled interoperable blockchain network designed for institutional assets and built to responsibly unlock the potential of synchronized financial markets.

The Canton Network aims to break down silos in the financial markets, allowing previously isolated systems to interoperate securely while adhering to the governance, privacy, permissioning and controls required by highly regulated industries.

The network provides financial institutions with a safer and reconciliation-free environment where assets, data and cash can seamlessly synchronize across applications. This capability opens opportunities for financial institutions to offer innovative products to clients while improving efficiency and risk management.

A notable feature of the Canton Network is its ability to compose digital bonds and digital payments across separate applications, enabling atomic transactions that guarantee simultaneous exchange without operational risk. Previously disparate systems such as asset registers and cash payment systems can now seamlessly interact, enhancing transaction speed and security.

Moreover, the Canton Network facilitates collateralized financial transactions by allowing digital assets to connect with repo or leveraged loan applications. This interoperability enables greater flexibility and efficiency in utilizing digital assets within various financial operations.

“For the first time, financial institutions can realize the full benefits of a global blockchain network while operating within the regulatory guardrails that ensure a safe, sound and fair financial system,” Yuval Rooz, co-founder and CEO at Digital Asset. “This is a significant step forward for the blockchain space.”

The introduction of the Canton Network breaks down traditional barriers between systems and applications, allowing institutions to offer innovative solutions to their clients while optimizing their own operational processes.

Canton Network participants are to begin testing interoperability capabilities across a range of applications and use cases in July. Canton Network participants 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.

Edited by Alex Passett

Share this Page


Social media is impacting the value of your cryptocurrency. This cross-platform audit will show how to improve consumer and influencer sentiment.