The Canton Network, a new blockchain system built with Digital Asset’s smart-contract language Daml, has recently garnered the interest of several legacy finance and tech firms, including Deloitte, Goldman Sachs, and Microsoft. Other notable participants in the network include BNP Paribas, Deutsche Börse Group, Cboe, Moody’s, and Paxos, a firm that creates stablecoins for crypto firms such as Binance and PayPal.
The Canton Network offers financial institutions the opportunity to retain control of their own blockchain networks while enjoying the benefits of a global blockchain network. The system aims to connect separate blockchains together, enabling firms to realize the full potential of blockchain technology.
The first testing of the Canton Network is set to commence in July, and the participation of these firms is expected to unlock new opportunities for market participants. Yuval Rooz, the co-founder and CEO of Digital Asset, believes that “for the first time, financial institutions can realize the full benefits of a global blockchain network while operating within the regulatory guardrails.”
Many of the firms that have joined the Canton Network have already been experimenting with blockchain technology for several years. This experimentation has usually occurred within the companies themselves, with banks and other financial giants developing their own proprietary blockchains. For example, JPMorgan has created the blockchain division Onyx.
However, the Canton Network promises to offer something different. According to the statement, it is a “network of networks,” meaning that it can connect separate blockchains together, allowing firms to retain control of their own blockchain networks.
The emergence of the Canton Network indicates that, despite the ongoing Crypto Winter and the crisis of reputation post the fall of FTX, large legacy players are still interested in the promise of blockchain technology. Publicly traded firms like PayPal and Robinhood have recently announced upgrades to their crypto services, Fidelity has opened up crypto trading on its platform to general consumers, and firms like Franklin Templeton have continued to invest in blockchain products, even Web3 gaming studios.
Efforts like the Canton Network will undoubtedly help the industry further explore the frontier of blockchain technology. Cathy Clay, an executive vice president of Cboe Global Markets, believes that “by leveraging new blockchain technologies, we can potentially unlock new opportunities for market participants.”
In conclusion, the participation of several legacy finance and tech firms in the Canton Network is a significant development in the blockchain industry. It is yet another indication that the promise of blockchain technology continues to attract interest from large legacy players, and it could help unlock new opportunities for market participants in the future.