Global Banks Participate in Large-Scale Blockchain Pilot Test – Several prominent financial institutions, including Goldman Sachs, BNY Mellon, and Cboe Global Markets, have successfully conducted an extensive trial using blockchain technology.
As per a Bloomberg report on March 12, institutional investors carried out over 350 simulated transactions utilizing distributed ledger technology across various sectors such as tokenized assets, fund registry, digital cash, repo, securities lending, and margin management on the Canton network.
This network was established in May 2023 by Digital Asset Holdings. The pilot involved 15 asset managers, 13 banks, four custodians, three exchanges, and Paxos Trust, the stablecoin issuer. On the same day, the Canton Network announced that 155 participants from 45 major organizations have demonstrated settlement across 22 permissioned blockchains connected to its ledger.
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The firm stated: “Over a four-day period, participants were invited to try 22 dApps comprising five fund registries, five cash registries, three bond registries, three trading, four margin, and two financing apps, to exchange tokenized securities, money market funds, and deposits across applications.” The Canton Network is a blockchain network tailored for institutional investors, featuring privacy-enabled interoperability.
Among its capabilities, this blockchain enables financial institutions to transfer regulated assets, data, and cash among themselves instantly. “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,” according to a press release from Canton.
It added, “Likewise, a digital asset could be used in a collateralized financial transaction via connection to a repo or leveraged loan application.” Present members of the Canton Network encompass Deloitte, Deutsche Börse, Microsoft, Moody’s, and S&P Global. Tokenization has sparked notable attention from both institutional investors and celebrities over the past year.
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On Feb. 7, the Hong Kong branch of UBS, a Swiss multinational bank, tokenized a call warrant options for the stock of Chinese smartphone giant Xiaomi on Ethereum, in collaboration with local crypto exchange OSL. Shortly after, Argentine soccer icon Lionel Messi revealed the launch of a tokenized product in collaboration with Join The Planet, an environmental nonprofit organization responsible for the PLANET token.
