Microsoft, Goldman Sachs and others Back Canton Network, a new financial blockchain – here’s what you need to know

A number of prominent technology and digital asset firms have expressed support for the Canton Network, a new blockchain that seeks to streamline financial markets through the use of Web3 technology.

In a recent press release, the platform named Microsoft, Capgemini, Deloitte, IntellectEU and Umbrage among its industry partners, with Goldman Sachs, BNP Paribas, Deutsche Börse Group and EquiLend as its first customers.

The Canton Network is a “privacy-enabled interoperable blockchain network designed for institutional assets and built to responsibly unlock the potential of synchronized financial markets,” the announcement said.

The platform uses a smart contract language called Daml, which was developed by the major financial technology and services firm Digital Asset.

The Canton Network creates a “network of networks,” enabling the financial markets’ previously isolated systems to work together, the announcement said.

It is also building a “reconciliation-free environment” for financial institutions, enabling free synchronization of assets, data and cash across applications.

Notably, more than thirty participants have already signed up for the platform, which includes big names in the industry, including Paxos, Cboe Global Markets, Goldman Sachs, Digital Dollar Project, Umbrage, Versana, VERT Capita and more.

“The Canton network is a powerful response to industry demands for a solution that leverages the potential of blockchain while preserving fundamental privacy requirements for institutional finance,” said Chris Zuehlke, Partner at DRW and Global Head of Cumberland, in a comment.

“This unique approach, combined with the ability to execute an atomic transaction across multiple smart contracts, is the building block needed to bring these workflows on-chain.”

Canton Network aims to capture the benefits of public blockchains without errors

Smart contract blockchain networks have not seen significant adoption among financial institutions and enterprises until now due to lack of privacy and control over data, trade-offs between control and interoperability, and inability to scale.

However, Canton Network aims to overcome these obstacles by striking a balance between decentralization, privacy and control required to operate within a safe and sound regulatory environment, the company said.

“Only the Canton Network enables participants to secure permissions, exposure and interactions across the network, to comply with security, regulatory and legal requirements.”

The platform enables connections with the innovative blockchain solutions currently on the market, while maintaining privacy and permissions.

The launch of the Canton Network comes as the financial sector begins to more fully embrace blockchain technology.

Many banks are exploring the use of blockchain for cross-border payments, and some have even created their own digital currencies. The potential benefits of blockchain, including greater speed and transparency, as well as lower costs, are driving these initiatives.

Recently, the European banks SEB and Crédit Agricole launched so|bond, a new blockchain-based platform for issuing digital bonds in the traditional financial sector.

The new platform aims to improve efficiency and enable real-time data synchronization across participants, similar to what Canton Network aims to achieve.