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Interoperable Blockchain Network for Institutional Asset Trading

Interoperable Blockchain Network for Institutional Asset Trading

(9 May 2023 - Global) BNP Paribas, Goldman Sachs and Deutsche Börse Group are among a group of financial market participants backing an initiative to build an interoperable blockchain network designed for institutional asset trading.

Billed as a ‘network of networks’, the Canton Network is designed to overcome the shortfalls of existing smart-contract blockchain networks to enable previously siloed systems in finance to become interoperable and synchronised, with the objective of creating new streamlined marketplaces.

Canton Network participants include 3Homes, ASX, BNP Paribas, Broadridge, Capgemini, Cboe Global Markets, Cumberland, Deloitte, Deutsche Börse Group, Digital Asset, The Digital Dollar Project, DRW, Eleox, EquiLend, FinClear, Gambyl, Goldman Sachs, IntellectEU, Liberty City Ventures, Microsoft, Moody’s, Paxos, Right Pedal LendOS, S&P Global, SBI Digital Asset Holdings, Umbrage, Versana, VERT Capital, Xpansiv, and Zinnia.

The Network will provide a decentralized infrastructure that connects independent applications built with Daml, Digital Asset’s smart-contract language. Using the Network, financial institutions will be able to enjoy a reconciliation-free environment where assets, data, and cash can synchronize freely across applications.

For example, asset registers and cash payment systems are distinct and siloed systems in today's markets. With the Canton Network, a digital bond and a digital payment can be composed across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk. Likewise, a digital asset could be used in a collateralized financial transaction via connection to a repo or leveraged loan application.

It is envisaged that the Network will be able to connect distinct blockchain solutions already operational, such as Deutsche Börse Group’s D7 post-trade platform and Goldman Sachs’ GS DAP, while retaining privacy and permissioning.

Jens Hachmeister, head of issuer services & new digital markets at Deutsche Börse Group, says: "The Canton Network vision strives to enable seamless connectivity across various blockchain networks in the industry. Such solutions are a key building block for future digital and distributed financial market infrastructures."

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