Digital Asset and a gaggle of monetary institutions have accomplished a second round of US Treasury on-chain financing on the Canton Network by introducing real-time collateral reuse and increasing the variety of stablecoins involved.
The latest phase saw five transactions happen, constructing on the July pilot that showed for the primary time that US Treasuries and the stablecoin USDC (USDC) might be combined to finance and settle transactions on the blockchain.
In the newest attempt, the businesses used multiple stablecoins to fund positions against tokenized U.S. Treasuries, expanding the pool of on-chain liquidity for funding transactions.
The trial demonstrated that tokenized U.S. Treasury securities could be passed between counterparties and reused as collateral in real time, circumventing the operational delays typically related to rehypothecation in traditional finance.
The initiative brought together Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale and M1X Global, all a part of the Canton Network's Industry Working Group.
Kelly Mathieson, chief business development officer at Digital Asset – the corporate behind the Canton Network – said in a press release that the test was “a part of a thoughtful evolution towards a brand new market model.”
Tradeweb Chief Technology Officer Justin Peterson added: “Demonstrating real-time collateral reuse and expanded stablecoin liquidity will not be only a technical achievement – it’s a blueprint for what the long run of institutional finance can appear like.”
Canton Network expands its presence in tokenized RWAs
The Canton Network, a Layer 1 blockchain for institutional finance, has expanded its presence across the tokenization sector this yr.
On December 4, its developer Digital Asset secured roughly $50 million in strategic support from BNY, iCapital, Nasdaq and S&P Global. The recent funding follows a $135 million capital raise earlier this yr and is meant to support the network's scaling efforts.
In October, asset manager Franklin Templeton announced that it could migrate its Benji Investments platform – which tokenizes shares of the firm's leading US money market fund – to the Canton Network.
Data from RWA.xyz also shows that the Canton Network now leads the marketplace for tokenized real-world assets by a large margin, with greater than $370 billion represented on-chain, far surpassing popular networks akin to Ethereum, Polygon, Solana and other public chains.
Top Blockchains for RWA. Source: RWA.xyz
