A set of legacy financial and tech companies, including Deloitte, Goldman Sachsand Microsoftcommitted to join the new blockchain system, the Canton Network.
Digital Asset, a blockchain startup backed by some of the largest institutional finance firms and formerly led by former JPMorgan executive Blythe Masters, is behind the implementation of the Canton Network, built using the company’s smart-contract language, Damn.
“For the first time, financial institutions can realize the full benefits of a global blockchain network while operating within regulatory guardrails,” Yuval Rooz, cofounder and CEO of Digital Asset, said in a statement.
Other Canton Network participants include BNP ParibasDeutsche Börse Group, Cboe, Moody’s, and even Paxos, a company that creates stablecoins for crypto companies like Binance as well PayPal. The companies will start testing the new blockchain starting in July, according to the statement.
Many of the companies cited in the Digital Asset announcement have been experimenting with blockchain technology for years, attracted by the possibility of the promised efficiencies in, for example, the tokenization of traditional financial assets, such as stocks or bonds, which removes the middlemen that currently. audit of financial products obtained from other institutions.
Currently, these experiments mostly take place within a single company, with banks and other financial giants creating their own proprietary blockchains. (JPMorgan, for example, created a blockchain division Onyx.) The promise of the Canton Network is that, according to the statement, it is a “network of networks.” In other words, it helps connect separate blockchains and allows companies to maintain control over their own blockchain networks.
“By using new blockchain technologies, we can open up new opportunities for market participants,” said Cathy Clay, an executive vice president of Cboe Global Markets, said in a statement. “Efforts like the Canton Network will help our industry further explore this frontier.”
The emergence of the Canton Network is further evidence that, despite the ongoing Crypto Winter and the crypto reputation crisis after the fall of FTX, major legacy players are still interested in the promise of—and actively investing in— blockchain technology.
Publicly traded companies like PayPal and Robinhood have recently Office has partnered upgrade their crypto services, Fidelity has OPENED crypto trading on its platform to general consumers, and companies like Franklin Templeton have continues to invest in blockchain productsAlthough Web3 gaming studios.