Digital Asset, in collaboration with a consortium of financial institutions, has successfully concluded a second round of onchain US Treasury financing on the Canton Network. This latest initiative introduces real-time collateral reuse and significantly expands the range of stablecoins utilized in these transactions.
Five transactions were executed during this advanced phase, building upon the foundational pilot conducted in July. The initial pilot demonstrated the feasibility of combining US Treasurys and the USDC stablecoin to finance and settle transactions directly on the blockchain.
In this most recent trial, participating companies leveraged multiple stablecoins to finance positions against tokenized US Treasurys. This approach broadens the pool of onchain liquidity available for financing transactions, offering greater flexibility and efficiency.
The trial effectively showcased that tokenized US Treasurys can be transferred between counterparties and repurposed as collateral in real-time. This capability bypasses the operational delays that are typically associated with rehypothecation processes in traditional finance, marking a significant advancement in blockchain-based financial operations.
The effort involved key industry players including Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global. All these entities are integral members of the Canton Network’s Industry Working Group.
Kelly Mathieson, chief business development officer at Digital Asset, the company behind the Canton Network, stated that the test represented "part of a thoughtful progression toward a new market model."
Justin Peterson, chief technology officer of Tradeweb, commented that "demonstrating real-time collateral reuse and expanded stablecoin liquidity isn’t just a technical achievement — it’s a blueprint for what the future of institutional finance can look like."
Canton Network Expands Footprint in Tokenized Real-World Assets
The Canton Network, a layer-1 blockchain specifically designed for institutional finance, has been actively expanding its presence within the tokenization sector throughout the current year.
On December 4, its developer, Digital Asset, secured approximately $50 million in strategic backing from prominent institutions including BNY, iCapital, Nasdaq, and S&P Global. This recent funding follows a substantial $135 million raise earlier in the year and is earmarked to support the network's scaling initiatives.
In October, asset manager Franklin Templeton announced its intention to migrate its Benji Investments platform, which tokenizes shares of the firm’s flagship US money market fund, to the Canton Network.
Data from RWA.xyz indicates that the Canton Network currently leads the market for tokenized real-world assets by a significant margin. With over $370 billion represented onchain, it substantially outpaces other popular networks such as Ethereum, Polygon, Solana, and other public chains in this domain.
