Microsoft and Goldman Sachs team up for financial system interoperability using blockchain
In a major development for the financial industry, leading market participants and Digital Asset have announced plans to launch the Canton Network, which is being touted as the industry’s first privacy-enabled interoperable blockchain network designed for institutional assets.
The network is built to responsibly unlock the potential of synchronized financial markets, allowing previously siloed systems to interoperate in ways that were previously impossible, and unlock new efficiencies and innovation.
We’re excited for @CantonNetwork, the industry’s first privacy-enabled interoperable blockchain network designed for institutional assets and built to unlock the potential of synchronized financial markets. #PowerfulConnections https://t.co/rlfKxyRLLT pic.twitter.com/Ha48jGUquo
— Digital Asset (@digitalassetcom) May 9, 2023
The Canton Network already has an impressive list of participants, including BNP Paribas, Deutsche Börse Group, EquiLend, and Goldman Sachs, as well as industry partners such as Capgemini, Deloitte, IntellectEU, Microsoft, and Umbrage. The network provides a decentralized infrastructure that connects independent applications built with Digital Asset’s smart-contract language, Daml, creating a ‘network of networks’ that enables financial institutions to experience a safer and reconciliation-free environment where assets, data, and cash can synchronize freely across applications.
One of the key benefits of the Canton Network is its ability to allow digital bonds and payments to be composed across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk. A digital asset could also be used in a collateralized financial transaction via connection to a repo or leveraged loan application.
The Canton Network is unique in that it provides the decentralization of a network with the privacy and control essential to operating within a safe and sound regulatory environment. It removes the obstacles that have prevented other blockchain networks from achieving meaningful adoption among financial institutions and other enterprises, including a lack of privacy and control over data, trade-offs between control and interoperability, and an inability to scale.
As more Daml-built applications go into production this year and beyond, the number of connections on the Canton Network is expected to grow exponentially. Canton Network participants will begin testing interoperability capabilities across a range of applications and use cases in July.
Commenting on the launch of the Canton Network, Sankar Krishnan, Head of Digital Assets and FinTech at Capgemini, said, “This global blockchain network will revolutionize the way institutional assets transact by creating a safe system and trusted corridor.” Cathy Clay, Executive Vice President, Global Digital and Data Solutions, Cboe Global Markets, added, “Efforts like the Canton Network will help our industry further explore this frontier.”
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