Goldman Sachs, BNY Mellon, Cboe Global Markets and several other firms have completed a series of tests on Canton Network, an interoperable blockchain network designed for institutional assets.
Canton Network, a platform set to become the leader of digital assets in the financial sector, has worked closely with major banks such as BNY Mellon and Goldman Sachs, as well as the Cboe Global Markets exchange, to conduct a series of simulated transactions focused on tokenization, liquidation and capital optimization.
The tests conducted by the major investment and asset management banks involved running 350 simulated transactions on the blockchain for tokenized assets, fund registration, digital cash, securities lending, and margin management. All of these transactions were carried out through 22 authorized decentralized applications (DApps) connected to the Canton Network, where the controls required for regulated capital markets were guaranteed, according to the report. reported the blockchain network, on March 12.
In total, 155 participants from 45 banks and financial sector entities were involved in the recent tests carried out on the blockchain.
Canton Network, developed by Digital Asset Holdings, harmonizes the decentralization and privacy of blockchain in the traditional financial sector. According to its executives, so far, this is the only blockchain that allows mobility of institutional assets and data with a high level of synchronization and privacy, without compromising trust or autonomy.
An interbank blockchain network
Canton Network has successfully demonstrated that interoperability of the blockchain ecosystem and the financial system is possible. As mentioned, recent tests conducted They allowed the Connecting 22 decentralized applications in the capital markets domain, facilitating the execution of hundreds of transactions, in a secure and atomic manner, in multiple parts of the value chain of these markets.
The creators of Canton Network pointed out that in addition to the successful transactions demonstrating interoperability, the recent tests also demonstrated “the potential benefits of using such a network to reduce counterparty and settlement risk, optimize capital, and enable intraday margin cycles.”
Overall, this initiative has marked an important milestone in the exploration of blockchain technology for the creation of more efficient and transparent financial solutions. Testing of the Canton Network was due to begin in July 2023. However, it was not until late 2023 that banks began testing on the chain.
How was the Canton Network pilot test?
The Canton Network pilot, which took place amid a markedly bullish season for cryptocurrencies, brought together a diverse range of financial entities, including 15 asset managers, 13 banks, 4 asset custodians, 3 market exchanges, and 1 financial market infrastructure provider. The network detailed that the pilot took 4 days, with the participating financial institutions testing its full potential.
Yuval Rooz, CEO and co-founder of Digital Asset, said that the pilot test was a success and that it marked A milestone for the blockchain industry, by demonstrating how lIsolated financial systems can be connected and synchronized with the chain ecosystem, complying with current regulatory requirementsThe initiative demonstrated Canton Network’s ability to optimize today’s financial landscape by reducing costs, mitigating risks and improving operational efficiency.
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