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

Landmark initiative between some of the largest organisations across the capital markets creates a ‘network of networks’ allowing siloed systems to interoperate while balancing the decentralisation with privacy and control.

Some of the biggest players in the financial markets have united to launch 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 siloed systems in financial markets to interoperate with the appropriate governance, privacy, permissioning 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 synchronised financial markets”.

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

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

“For the first time, financial institutions can realise the full benefits of a global blockchain network while operating within the regulatory guardrails that ensure a safe, sound, and fair financial system,” said Yuval Rooz, co-founder and CEO at 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.”

The Canton Network will aim to enable financial institutions to experience a safer and reconciliation-free environment where assets, data, and cash can synchronise freely across applications.

This result could create opportunities for financial institutions to offer innovative new products to their clients while enhancing their efficiency and risk management.

In a statement from the combined Canton Network, the example given was how asset registers and cash payment systems are “distinct and siloed systems” in today’s markets, but through the new initiative, a digital bond and a digital payment can be composed across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk. Likewise, a digital asset could be used in a collateralised financial transaction via connection to a repo or leveraged 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.