Big names provide ballast for blockchain technology

Digital Asset announced on Tuesday that, in collaboration with a number of well-known companies, it is launching Canton Network. This could be a long-term nod to the blockchain investment thesis and a short-term validation of the technology itself.

Canton Network is the financial industry’s first privacy-enabled blockchain network for institutional assets. It already has participation from 30 listed and related companies. Some of these companies are members of Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC).

Companies participates in the Canton Network includes 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, according to a statement released by Digital Asset.

BLKC, which tracks the Alerian Galaxy Global Blockchain Equity, Trusts and ETPs Index, has shares in Microsoft and Goldman Sachs. Both of these firms are members of the Dow Jones Industrial Average.

Canton Network participants may receive benefits

Technology, including blockchain, is a cornerstone of developments in financial services. It is also a prime avenue for companies to take market share from rivals. Therefore, Canton Network can represent a way to achieve this goal.

“With the Canton Network, a digital bond and a digital payment can be assembled across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk,” Digital Asset said in the statement. “Similarly, a digital asset can be used in a financial transaction with collateral via connection to a repo or loan application.”

Specific to BLKC, the Invesco exchange-traded fund allocates 21.41% of its weight to the financial sector. Also, several of its holdings from that group beyond Goldman Sachs may provide practical future Canton Network participants.

The Canton Network ameliorates some of the issues associated with blockchain technology, including concerns about privacy and scalability. It can also make the offer attractive to more BLKC components and other companies.

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