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 Canton Network, a new blockchain seeking to streamline financial markets through the use of Web3 technology.
In a recent press release, the platform called Microsoft, Capgemini, Deloitte, IntellectEU, and Umbrage among its industry partners, with Goldman Sachs, BNP Paribas, Deutsche Börse Group, and EquiLend as its first clients.
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 read.
The platform uses a smart-contract language called Daml, which is developed by major financial technology and services firm Digital Asset.
The Canton Network creates a "network of networks," enabling financial markets' previously isolated systems to interoperate, the announcement said.
It also builds a "reconciliation-free environment" for financial institutions, allowing for the 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 within 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 industry calls for a solution that harnesses the potential of blockchain while preserving fundamental privacy requirements for institutional finance," Chris Zuehlke, Partner at DRW and Global Head of Cumberland, said in a comment.
"This unique approach, coupled 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 Flaws
Smart contract blockchain networks have not seen significant adoption among financial institutions and enterprises until now due to the lack of privacy and control over data, trade-offs between control and interoperability, and the 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 safeguard 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 in the market, all while retaining privacy and permissioning.
The launch of Canton Network comes as the financial sector is beginning to embrace blockchain technology more fully.
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.
Just recently, 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 aspires to achieve.