Launch of Financial Blockchain, Canton Network, backed by Microsoft, Goldman Sachs and more

Prominent financial firms including Deloitte, S&P Global and Moody’s have joined forces to provide support for the launch of the Canton Network. This blockchain platform uses Web3 technology to streamline and simplify financial markets.

According to a press release, the network seeks to provide businesses with a decentralized infrastructure that can increase transaction efficiency by connecting financial systems and enabling them to run harmoniously.

They claimed that assets, data and cash could be seamlessly synchronized across applications, creating opportunities for financial institutions to offer new, innovative products to their customers while improving efficiency and risk management.

Despite a decline in the value of digital assets in the previous year, institutional use of Web3 technology continued to be significant. The announcement indicates that despite regulatory challenges in the US and the impact of past cryptocurrency failures, some businesses remain hopeful about the potential of blockchain technology.

Digital Asset, a software company, created the smart contract language known as Daml, which is used by the Canton Network.

Digital Asset co-founder and CEO Yuval Rooz stated that for the first time, financial institutions could fully utilize the benefits of a global blockchain network while complying with regulatory guidelines that ensure the safety, stability and fairness of the financial system. Rooz emphasized that this development represents a remarkable advance for the blockchain industry.

Paxos, Goldman Sachs, BNP Paribas, Cboe Global Markets and Microsoft are among the 30 members of the Canton Network so far, and the organization predicted that as applications are built this year, the network’s connections will continue to grow rapidly.

The network tackles some of the biggest obstacles preventing institutions from implementing Web3 technology, including a lack of data protection and control, trade-offs with chains that already provide interoperability, and scaling limitations. Additionally, beginning in July, network users will begin evaluating the network’s compatibility with a variety of use cases and apps.

Larry Fink, CEO of BlackRock, argued last year that the tokenization of assets, which involves representing assets as shares with digital tokens, could mark a turning point for traditional finance by proposing the possibility of “instant settlement” and “reduced fees.”

And other members of the Canton Network seem to agree, including Cathy Clay of Cboe Global Markets. Clay, executive vice president of data and access solutions at Cboe, believed that tokenization of real-world assets presents an exceptional opportunity. In a prepared statement, Clay highlighted the potential to create new market infrastructure and improve trade efficiency on a global scale. Cboe sees this development as a significant path for innovation and growth in the financial industry.