Cboe Joins Goldman Sachs and BNP Paribas in Forming New Global Blockchain Network – Broadridge Financial Soln (NYSE:BR), Cboe Global Markets (BATS:CBOE)

Work with Goldman Sachs GS and digital assets, Cboe Global Markets CBOE is launched Canton Network, the first privacy-enabled interoperable blockchain network for institutional assets. Canton Network aims to overcome the limitations of public blockchains by providing a decentralized infrastructure that allows previously isolated systems in financial markets to work together while maintaining the necessary governance, privacy, permissions and controls required for highly regulated industries.

The participating organizations – which also include BNP Paribas BNPQY, Deutsche Börse Group and others – seek to unlock the potential of synchronized financial markets through the Canton Network. The network is designed to address the challenges faced by public blockchains, such as privacy and data control issues, scalability limitations, and lack of interoperability. By connecting independent applications built with Digital Asset’s smart contract language called Daml, the Canton Network enables financial institutions to leverage the benefits of a global blockchain network while complying with local regulatory requirements.

Yuval Rooz, co-founder and CEO of Digital Asset, emphasizes that the Canton Network represents a significant advance for the blockchain space. It gives financial institutions the ability to leverage a global blockchain network while operating within the necessary regulatory framework, ensuring a safe and fair financial system. By enabling a more secure and reconciliation-free environment, the network allows assets, data and cash to sync seamlessly across applications, creating opportunities for innovation and improving efficiency and risk management for financial institutions.

One of the most important benefits of blockchain technology in regulated markets is the ability to ensure secure and transparent transactions while maintaining privacy and control over sensitive data. Blockchain’s distributed ledger system allows for tamper-proof recording of transactions, increases trust and reduces the risk of fraud. In addition, the use of smart contracts automates and streamlines processes, reduces operating costs and improves efficiency. The inclusion of Cboe, a leading global exchange operator, in the Canton Network highlights the potential impact of blockchain technology in transforming traditional financial markets.

Canton Network offers several use cases that demonstrate its capabilities. For example, it enables the composition of a digital bond and a digital payment across separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk. It also facilitates the use of digital assets in secured financial transactions, such as repo or loan applications. These examples demonstrate the potential for the Canton Network to drive innovation and enable new product offerings while improving risk management and efficiency for financial institutions.

The collaboration to create the Canton Network involves several prominent industry players, including the ASX, Broadridge BRCapgemini, DRW, EquiLend, Microsoft MSFT, Moody’s MCO, Paxos and SBI Digital Asset Holdings. This diverse group of participants highlights the broad interest in the technology and the recognition of the need for a privacy-enabled interoperable blockchain network in the institutional asset space.

Through their joint efforts, these organizations aim to unlock the full potential of blockchain technology, transform the way financial markets operate and ensure a safer, efficient and transparent ecosystem for all participants.

Featured image by Shubham Dhage on Unsplash.

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