Canton Network Successfully Demonstrates Real-Time Trading of Stablecoin-Collateralized US Treasuries, Institutional Blockchain Finance Enters a New Phase

Source: TokenPost Original Title: Canton Network Demonstrates Real-Time U.S. Treasury Trading with Stablecoin Collateral—A Step Forward for Institutional Blockchain Finance Original Link:

Digital asset companies and global financial institutions have successfully completed the second phase of an on-chain U.S. Treasury experiment on the Canton Network, demonstrating real-time collateral reuse and expanded stablecoin liquidity.

The experiment was conducted on the private Canton blockchain network, showcasing the feasibility of real-time transfer and reuse of tokenized U.S. Treasuries in interbank trading. This overcomes the time delay issues traditionally encountered in collateral reuse within legacy finance. Notably, in this phase, various stablecoins in addition to USDC were used as collateral for Treasury positions, enabling a range of financial transactions.

A total of 5 transactions were executed, validating the practicality of blockchain-based U.S. Treasury finance. Participating institutions included Bank of America, Citadel Securities, Cumberland, Virtu Financial, Société Générale, TradeWeb, Circle, Braille, and M1X Global, all members of the Canton Network industry working group.

Kelly Madison, Chief Business Development Officer at Digital Asset, called the experiment “a stepwise advance toward a new market model.” Justin Peterson, CTO at TradeWeb, said: “The significance of real-time collateral reuse and expanded stablecoin liquidity goes far beyond a technical demonstration—this is a blueprint for the future of institutional finance.”

This year, the Canton Network has rapidly expanded its footprint in the tokenized real-world assets (RWA) sector. In December last year, Digital Asset secured around $50 million in strategic investments from BNY, Nasdaq, S&P Global, and others, and raised an additional $135 million earlier this year.

In October, global asset manager Franklin Templeton announced it would migrate its tokenized money market fund platform to the Canton Network. According to RWA analytics site RWA.xyz, the Canton Network currently processes more than $370 billion in tokenized real-world assets on-chain, ahead of major public blockchains like Ethereum, Polygon, and Solana.

Canton Network is an institution-focused layer-one blockchain dedicated to real-time financial transaction infrastructure, increasingly validating the integration of blockchain and the real economy in real-world markets.

Market Interpretation

Canton Network is an institution-driven innovation case where traditional financial limitations are overcome through blockchain. Collateral reuse and real-time processing are being closely watched as strategic approaches to improving capital efficiency and liquidity.

Strategic Points

Institutional investors can simultaneously achieve risk reduction and efficiency gains through tokenized U.S. Treasuries and stablecoin-based real-time collateral management. It is important to note that blockchain applications are expanding from simple payments to prime brokerage services.

Glossary

• Collateral Reuse (Rehypothecation): The financial practice of an institution reusing collateral it has received in other transactions
• RWA (Real-World Asset): Physical assets such as real estate, government bonds, or funds that are converted into digital tokens via blockchain
• Stablecoin: A cryptocurrency pegged to the value of the U.S. dollar or other fiat currency, with low volatility, commonly used as collateral or a payment method