30 Firms Team Up to Launch Interoperable Blockchain “Network of Networks”

Blockchain application platform Digital resource has launched the ‘Canton Network’, the industry’s first institutional asset blockchain network; in collaboration with 29 other market players – including the likes of BNP Paribas, Goldman Sachs, FinClear, Deutsche Börse and Microsoft.

The new privacy-enabled interoperable blockchain network is designed for institutional assets and built to unlock the potential of synchronized financial markets. The Canton Network will provide a decentralized infrastructure that connects independent applications built with DamDigital Asset’s smart contract language.

The offering creates a “network of networks”, enabling previously closed systems in financial markets to interoperate with the proper governance, privacy, permissions and controls required for highly regulated industries. The network enables financial institutions (FIs) to experience a more secure and reconciliation-free environment where assets, data and cash can be freely synchronized across applications. This creates opportunities for FIs to offer new innovative products to their clients while improving their efficiency and risk management.

Canton Network participants include 3 Home, ASXBNP Paribas, Broadridge, Capgemini, Cboe Global
Markets, Cumberland, DeloitteDeutsche Börse Group, Digital Asset, The Digital Dollar Project, DRW,
Eleox, EquiLendFinClear, GambylGoldman Sachs, IntellectEU, Liberty City VenturesMicrosoft,
Moody’s, Paxos, Right pedal LendOS, S&P Global, SBI Digital Asset Holdings, Umbrage, Versace, HOST
Capital, Xpansiveand Zinnia.

Obstacles of the past

In the past, smart contract blockchain networks have not achieved meaningful adoption among FIs and other businesses. Canton Network explained that this was due to three significant shortcomings:

1) Lack of privacy and control over data

Other chains have shortcomings around privacy; prevent the use of the technology by several regulated participants on the same network.

2) Accept trade-offs between control and interoperability

Other chains also require operators to lose their full control over applications by using a shared pool of validators to achieve interoperability.

3) An inability to scale

Applications competing for global network resources and capacity constraints caused by how public blockchains work, ensuring they can achieve the scale and performance required by FIs have also been a significant challenge in the past.

Coping with past problems

Canton Network seeks to remove these obstacles by balancing the decentralization of a unique network with the privacy and control essential to operating within a safe and sound regulatory environment. The network enables participants to secure permissions, exposure and interactions across the network, to comply with security, regulatory and legal requirements.

Listen to the market

Joseph Codyprincipal at Deloitte Consulting LLP, discussed the launch: “Deloitte’s advisory and consulting team is committed to providing its deep experience in deploying interconnected applications across the Canton Network.

“We are proud to support Digital Asset in serving institutions that are reinventing the industry through tokenization of assets, facilitating rapid cross-organizational settlement, creating new marketplaces, establishing an immutable record of shared data, and facilitating secure transactions across the Canton Network.

“This blockchain network is also the first of its kind, and we are excited to partner with global leaders who are embarking on a more connected and efficient future for financial services.”

Yuval Rooz, co-founder and CEO of Digital Asset, also commented on the benefits offered by the Canton Network. Rooz said: “For the first time, financial institutions can realize the full benefits of a global blockchain network while operating within the regulatory railings that ensure a safe, sound and fair financial system. This is a significant step forward for the blockchain space.”

“We look forward to helping this founding group of network operators and users build and connect applications to the Canton Network.”

Rashmi MisraGM of AI, Emerging Technologies and Business Development at Microsoft, also said, “We are excited to be a support partner for the Canton Network. We look forward to helping the financial community build and scale cloud-enabled Web3 applications on Azure, while harnessing the power of AI to improve user experience and drive developer adoption.”