Microsoft, Goldman Sachs, Others Team Up To Expand New Blockchain Network
- Digital Asset and a collection of companies, including Microsoft, Goldman Sachs, and Deloitte, are launching the Canton blockchain network for financial institutions.
- In July, Canton Network participants will begin testing various functionalities.
- Daml allows Canton to connect to a variety of applications.
A new blockchain network targeted at financial institutions is being developed by a group of banking and technology players, including Microsoft and Goldman Sachs.
The Canton Network, announced on May 9, would be a privacy-enabled interoperable blockchain network geared at people dealing with institutional assets. It will enable the synchronization of hitherto siloed financial markets.
A number of institutional behemoths have joined the initiative as partners. Among the major participants are BNP Paribas, Deloitte, Goldman Sachs, Broadridge, and Microsoft. Digital Asset’s Daml smart contract language is utilized by the network to link multiple apps. Additionally, the application would allow for the synchronization and interoperability of various financial market systems.
In July, the network will begin testing its capabilities, which include robust privacy safeguards and the capacity to expand and execute at the scale required by big financial institutions.
Digital Asset provides and owns the infrastructure’s technology, which includes the Canton protocol and Daml smart contracts. The network, on the other hand, is owned by the partners rather than the company.
According to Chris Zuehlke, partner at DRW and worldwide head of Cumberland, one of the partners, the initiative would solve the need to use blockchain technology while maintaining core privacy needs. Moreover, the network will be able to perform an atomic transaction across numerous smart contracts.
Canton establishes a ‘network of networks,’ enabling previously compartmentalized systems in financial markets to interoperate while maintaining the proper governance, privacy, permissioning, and controls needed for highly regulated companies.
It provides financial organizations with a safer, reconciliation-free environment in which assets, data, and cash may easily synchronize between apps. This allows financial institutions to provide new creative solutions to their customers while improving efficiency and risk management.
For years, banks and other major organizations have been creating and testing blockchain applications in the hopes of simplifying and expediting some of their most complicated operations.
Much of the endeavor has focused on investigating methods to convert conventional assets, such as stocks and bonds, into blockchain tokens. Others have concentrated on accelerating the trade and settlement of different assets, as well as enabling international payments. Although several systems have been tested and certain applications have been deployed, such blockchain networks have yet to be widely adopted.
The Canton Network’s expansion and growing institutional interest in digital assets highlight the changing environment of the banking and technology industries.
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