Canton Network, using stablecoins as collateral for real-time trading of US Treasuries demonstration... Institutional blockchain finance takes another step forward

Digital asset companies and global financial institutions have successfully completed the second phase of their on-chain US Treasury financial experiment, showcasing real-time collateral reuse functionality and the expansion of stablecoin liquidity.

The experiment was conducted on the private blockchain Canton Network, demonstrating the real-time transfer and reuse of tokenized US Treasuries in interbank transactions. Blockchain technology was used to overcome the time delays associated with collateral reuse in traditional finance. Notably, in this phase, in addition to USDC, multiple stablecoins were used, and various financial transactions were executed using Treasury positions as collateral.

A total of 5 transactions were executed, proving the practicality of blockchain-based US Treasury finance. Participating institutions included Bank of America, Citadel Securities, Cumberland, Virtu Financial, Société Générale, Tradeweb, Circle, Breal, M1X Global, and others—all members of the Canton Network industry working group.

Kelly Mathieson, Chief Business Development Officer of Digital Asset, described the experiment as “a milestone in the progression toward a new market model.” Justin Peterson, CTO of Tradeweb, emphasized: “Real-time collateral reuse and stablecoin liquidity expansion go beyond a technology demonstration; they are a blueprint for the future of institutional finance.”

Canton Network has rapidly expanded its influence in tokenized real-world assets this year. In December last year, Digital Asset raised approximately $50 million in strategic investment from BNY, Nasdaq, S&P Global, and others, and raised an additional $135 million earlier this year.

In October, global asset management firm Franklin Templeton announced it would migrate its tokenized money market fund platform to Canton Network. According to RWA analytics site RWA.xyz, Canton Network currently processes over $370 billion in on-chain tokenized real-world assets, leading among major public blockchains such as Ethereum, Polygon, and Solana.

Canton Network is an institution-centric Layer 1 blockchain, aiming to build real-time financial transaction infrastructure. Its integration of blockchain and real-world assets is continuously being validated in actual markets.

Article summary by TokenPost.ai

🔎 Market Interpretation

Canton Network is an innovation case led by institutions, aiming to overcome the limitations of traditional finance with blockchain. Its collateral reuse and real-time processing capabilities have attracted attention as strategic ways to simultaneously improve capital efficiency and liquidity.

💡 Strategic Highlights

Institutional investors can simultaneously reduce risk and increase efficiency through tokenized US Treasuries and real-time collateral management based on stablecoins. Notably, blockchain applications are expanding from simple payments to the prime brokerage business sector.

📘 Glossary

• Collateral reuse: The financial practice where an institution reuses collateral received for other transactions

• RWA: Real-world assets such as real estate, treasuries, and funds that are converted into digital tokens via blockchain

• Stablecoin: A cryptocurrency pegged to the value of the US dollar or similar, with low volatility, often used as collateral or a means of payment

TP AI Notice

This article uses a language model based on TokenPost.ai for summarization. The main content may be omitted or inconsistent with the actual facts.