Digital Asset and a consortium of financial institutions have successfully completed a second round of onchain US Treasury financing on the Canton Network, introducing real-time collateral reuse and expanding the range of stablecoins involved.
The latest phase saw five transactions executed, following the initial pilot in July, which showcased the combination of US Treasurys and the USDC stablecoin for financing and settling transactions on the blockchain.
In this recent trial, multiple stablecoins were utilized to finance positions against tokenized US Treasurys, broadening the onchain liquidity available for transaction financing.
The trial demonstrated the ability to transfer tokenized US Treasurys between counterparties and reuse them as collateral in real-time, bypassing the usual operational delays associated with rehypothecation in traditional finance.
The initiative brought together prominent institutions such as Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global, all part of the Canton Network’s Industry Working Group.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, the firm behind the Canton Network, stated that the test was a step towards a new market model.
Justin Peterson, Chief Technology Officer at Tradeweb, emphasized that showcasing real-time collateral reuse and expanded stablecoin liquidity is not just a technical achievement but a vision of the future of institutional finance.
Canton Network Expands Presence in Tokenized RWAs
The Canton Network, a layer-1 blockchain designed for institutional finance, has been making inroads in the tokenization sector this year.
On December 4, Digital Asset, the developer of the Canton Network, secured approximately $50 million in strategic funding from BNY, iCapital, Nasdaq, and S&P Global. This funding, following a $135 million raise earlier in the year, is aimed at supporting the network’s expansion efforts.
In October, asset manager Franklin Templeton announced its plans to migrate its Benji Investments platform, which tokenizes shares of the firm’s flagship US money market fund, to the Canton Network.
Data from RWA.xyz indicates that the Canton Network now dominates the market for tokenized real-world assets, with over $370 billion represented onchain, surpassing popular networks like Ethereum, Polygon, Solana, and other public chains.
Top blockchains for RWA. Source: RWA.xyz