Deloitte and BNP Paribas join a consortium to create blockchain network for financial market The Block
[gpt3]rewrite
Digital Asset and leading market participants have unveiled plans to launch the Canton Network, the industry’s first privacy-enabled interoperable blockchain network designed for institutional assets and built to responsibly unlock the potential of synchronized financial markets.
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.
The Canton Network will provide a decentralized infrastructure that connects independent applications built with Daml, Digital Asset’s smart contract language. It creates a “network of networks”, allowing previously looped systems in financial markets to interoperate with the proper governance, privacy, permissions and controls required for highly regulated industries. Canton Network enables financial institutions to experience a more secure and reconciliation-free environment where assets, data and cash can be freely synchronized across applications. This creates opportunities for financial institutions to offer new innovative products to their customers, while improving their efficiency and risk management.
For example, asset registers and cash payment systems are distinct and siled systems in today’s markets. 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. Similarly, a digital asset can be used in a financial transaction with security via a link to a repo or loan application.
Capturing the benefits of public blockchains without the pitfalls
Until now, smart contract blockchain networks have not achieved meaningful adoption among financial institutions and other enterprises due to three significant shortcomings:
- The lack of privacy and control over data: other chains have shortcomings around privacy which prevent the use of the technology by several regulated participants on the same network. There are currently no other blockchains that can offer data protection or control at any layer of the network.
- Other bblockchains have had to accept trade-offs between control and interoperability: other chains require operators to lose their full control over applications by using a shared pool of validators to achieve interoperability.
- Theinability to scale: With applications competing for global network resources and the inherent capacity limitations caused by how public blockchains work, achieving the scale and performance that financial institutions need remains challenging.
Canton Network removes 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. Only the Canton Network enables participants to secure permissions, exposure and interactions across the network, to comply with security, regulatory and legal requirements.
The network can connect innovative blockchain solutions on the market today, such as Deutsche Börse Group’s D7 post-trade platform and Goldman Sachs’ GS DAP, while maintaining privacy and permissions. As more Daml-built applications go into production this year and beyond, the number of connections on the Canton Network will grow exponentially. For example, one application’s monthly nominal turnover exceeds the most active crypto token volumes.
Canton Network participants will begin testing interoperability capabilities across a variety of applications and use cases in July.
Want to learn more about blockchain from industry leaders? Check out the Blockchain Expo taking place in Amsterdam, California and London.
Explore other upcoming technology events and webinars powered by TechForge here.
[gpt3]
