The Canton Network of Companies
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Blockchain technology brings together Microsoft, Goldman Sachs, Deloitte, Moody’s, and others to ease out digital bonds and financial transactions.
1. What is the Canton Network?
A group of companies, including Goldman Sachs, Microsoft, Deloitte, and others, are working together to introduce a new system based on blockchain technology. This system, known as the Canton Network, aims to connect different applications used by institutions while providing better privacy and controls compared to existing technology. The system can meet the needs of financial institutions in terms of size and performance.
2. Why Canton Networks?
The Canton Network creates a “network of networks” that allows separate systems in financial markets to work together with the appropriate rules, privacy, permissions, and controls required for highly regulated industries. This means that financial institutions can securely synchronize assets, data, and cash across applications, creating a safer and more efficient environment without the need for constant reconciliations. It also opens up opportunities for financial institutions to develop new innovative products for their clients while improving their efficiency and risk management.
3. Who are the participant companies?
Testing of the Canton Network’s capabilities will begin in July. Other participants in the network include BNP Paribas, Broadridge, Cumberland, Digital Asset, Moody’s, Paxos, and SBI Digital Asset Holdings. The network will utilize the smart contract language developed by Digital Asset to connect different applications. The goal of the project is to provide decentralized infrastructure to institutional clients while ensuring their privacy.
4. Benefits to Netizens from the Canton Network
The Canton Network allows for the seamless execution of digital bonds, digital payments, and other financial transactions across separate applications, eliminating operational risks. It also enables the use of digital assets in collateralized financial transactions, such as repos or leveraged loans, by connecting with relevant applications.
