Several major technology and digital asset firms have expressed support for the Canton Network, a new blockchain intended to streamline financial markets through the use of Web 3 technology.
recently Press releaseWith Goldman Sachs, BNP Paribas, Deutsche Börse Group, and EquiLend as its first clients, the platform names Microsoft, Capgemini, Deloitte, IntellectEU, and Umbrage among its industry partners.
The Canton Network is a “privacy-enabled interoperable blockchain network designed for institutional assets and to responsibly unlock the potential of synchronized financial markets,” the announcement read.
The platform uses a smart-contract language called DAML, developed by leading financial technology and services firm Digital Asset.
The announcement states that the Canton Network forms a “network of networks”, enabling previously isolated systems of financial markets.
It also creates a “reconciliation-free environment” for financial institutions, allowing for seamless synchronization of assets, data and cash across applications.
Notably, over thirty participants have already signed up for the platform, including 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 answer to the industry call for a solution that harnesses the potential of blockchain while preserving fundamental privacy requirements for institutional finance,” said Chris Zuhlke, Partner and Global Head of Cumberland at DRW, 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 reap the benefits of public blockchains without the drawbacks
So far smart contract blockchain networks have not seen significant adoption among financial institutions and enterprises due to lack of privacy and control over data, trade-offs between control and interoperability, and inability to scale.
However, the Canton Network aims to overcome these obstacles by striking the balance between decentralization, privacy and control necessary to operate in a safe and healthy regulatory environment, the company said.
“Only Canton enables network participants to secure permissions, exposure and interactions across the network in order to comply with security, regulatory and legal requirements.”
The platform enables connection with innovative blockchain solutions currently on the market, all while maintaining privacy and permissionlessness.
The launch of the Canton Network comes as the financial sector is starting to more fully adopt 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.
More recently, the European Bank SEB and Crédit Agricole launched so|bond, a new blockchain-based platform for digital bond issuance in the traditional financial sector.
The new platform aims to improve efficiency and enable real-time data synchronization between participants, as the Canton network seeks to achieve.