Goldman Sachs, Cboe and Digital Asset among participants in new global blockchain network

Some of the biggest players in the financial markets have joined forces to launch the Canton Network, dubbed the industry’s first privacy-enabled interoperable blockchain network designed for institutional assets.

By creating a “network of networks”, Canton will allow previously isolated systems in financial markets to interoperate with the proper governance, privacy, permissions and controls required for highly regulated industries.

Among those involved are BNP Paribas, Cboe, Deutsche Börse Group and Goldman Sachs.

According to a statement, the intention is that the Canton Network is “built to responsibly unlock the potential of synchronized financial markets”.

The initiative is looking to help overcome some of the issues surrounding public blockchains such as lack of privacy and control over data, inability to scale and lack of interoperability.

The Canton Network will provide a decentralized infrastructure that connects independent applications built with Daml, Digital Asset’s smart contract language.

“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,” said Yuval Rooz, co-founder and CEO of Digital Asset.

“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.”

Canton Network will enable financial institutions to experience a more secure and reconciliation-free environment where assets, data and cash can be freely synchronized across applications.

This result can create opportunities for financial institutions to offer innovative new products to their customers while improving their efficiency and risk management.

In a statement from the combined Canton Network, the example was given of how asset registers and cash payment systems are “distinct and siled systems” in today’s markets, but through the new initiative, a digital bond and a digital payment can be assembled across two separate applications in a single atomic transaction, which guarantees 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.

The other firms involved in the network include ASX, Broadridge, Capgemini, Deutsche Börse Group, DRW, EquiLend, Microsoft, Moody’s, Paxos and SBI Digital Asset Holdings.