The Digital Asset Group and its partners, including Goldman Sachs, Deutsche Börse, S&P Global, Microsoft, and a dozen other financial giants, have announced the launch of the Canton Network. The platform is designed for institutional investors and aims to enhance efficiency in financial markets.
The Canton Network provides a decentralized infrastructure for integrating self-executing programs, known as smart contracts, developed with the company's proprietary programming language. By creating a "network of networks," it is supposed to enable interoperability among previously isolated systems in the financial markets. Canton focuses on implementing proper governance, data privacy, approval processes, and controls to meet the stringent requirements of regulated industries.
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Canton: a new blockchain network
The Canton Network aims to provide financial institutions with a secure and reconciled-free environment, allowing assets, data, and cash to be freely synchronized across applications. This opens up opportunities for financial institutions to offer new innovative products to their customers while improving efficiency and risk management.
In today's markets, cash registers and payment systems operate as separate and isolated entities. The Canton Network offers a solution to this fragmentation, according to the development team. The platform is supposed to enable the integration of a digital bond and a digital payment originating from different applications into a single atomic transaction. This approach should insure simultaneous exchange without any operational risks. Furthermore, the network facilitates the utilization of digital assets in secured financial transactions by establishing connections to repo or margin lending applications.
"Deloitte’s Advisory and Consultancy teams are committed to providing their deep experience in deploying interconnected applications across the Canton Network. We are proud to support Digital Asset in serving institutions that are reinventing the industry through tokenization of assets, facilitating rapid cross-organizational settlement, creating new marketplaces, establishing an immutable record of shared data, and facilitating secure transactions across the Canton Network. This blockchain network marks the first of its kind, and we are thrilled to collaborate with global leaders embarking on a more connected and efficient future for financial services." - Joseph Cody, principal, Deloitte Consulting LLP
Innovative solution for institutions?
According to the development team, the Canton Network aims to surpass existing blockchains. Blockchain technology uniquely combines network decentralization with privacy protection and control, which are essential for operating in a secure and robust regulatory environment. Only the Canton Network allows participants to safeguard permissions, exposure, and interactions within the network to meet security, regulatory, and legal requirements.
It should be noted that, according to crypto data provider DeFi Llama, there are over 180 smart contract-enabled blockchain networks on the market right now, each touting their own groundbreaking features. However, the adoption of many of these competing platforms remains limited, despite their unprecedented speed, privacy, or interoperability. After all, the majority of applications can already be used on existing networks with high liquidity.