Financial companies like Deloitte, S&P Global, and Moody’s came together to support the launch of the Canton Network, a blockchain designed to streamline financial markets using Web3 tech.
The network aims to provide companies with a decentralized infrastructure that can make transactions more efficient, linking financial systems and allowing them to operate in a synchronous manner, the participants said in a press release..
“Assets, data, and money can be freely synchronized across applications,” they said. “This creates opportunities for financial institutions to offer new innovative products to their clients while improving their efficiency and risk management.”
Institutional adoption of Web3 tech is still strong last year despite declining digital asset prices. The announcement suggests that some companies still view blockchain tech positively about its potential, despite a regulatory cloud in the US and damage caused by many crypto-native collapses.
Canton Network uses a smart-contract language called Daml, developed by software company Digital Asset.
“For the first time, financial institutions can realize the full benefits of a global blockchain network while operating within the regulatory guardrails that ensure a safe, sound, and fair financial system,” said Digital Asset co. -founder and CEO Yuval Rooz. “This is a significant step forward for the blockchain space.”
The Canton Network has 30 participants at the moment, including Paxos, Goldman Sachs, BNP Paribas, Cboe Global Markets, and Microsoft—and the group said it expects the number of network connections to grow rapidly this year as applications are developed.
The network addresses some of the most common obstacles that prevent institutions from using Web3 tech, the statement says, such as the lack of privacy and data control, trade-offs in chains that currently offer interoperability, and scaling limitations. And sstarting in July, network participants will begin testing network interoperability in a variety of use cases and applications.
BlackRock CEO Larry Fink SAYS last year that the tokenization of assets—representing assets such as stocks with digital tokens—could be an inflection point for traditional finance, holding the potential for “sudden settlement” and “decreasing fees.” .”
And some of the Canton Network participants seem to agree, including Cathy Clay of Cboe Global Markets.
“At Cboe, we believe that the tokenization of real-world assets can offer an unprecedented opportunity,” Clay, executive vice president of data and access solutions, said in a prepared statement, adding that it will “create a new market infrastructure and drive the efficiency of selling products around the world.”