Digital Asset and a consortium of financial institutions have successfully completed a second phase of on-chain US Treasury financing on the Canton Network, introducing real-time collateral reuse and broadening stablecoin involvement. Building on a pilot initiated in July, where US Treasurys and the USDC stablecoin were combined to finance and settle transactions on blockchain, this latest trial integrated multiple stablecoins to finance positions against tokenized US Treasurys, expanding on-chain liquidity for financing.
The experiment demonstrated that tokenized US Treasurys can be instantly transferred among counterparties and reused as collateral without the operational delays typically seen in traditional finance’s rehypothecation processes. Participants included major players such as Bank of America, Citadel Securities, Cumberland, DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global, members of the Canton Network’s Industry Working Group.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, described the trial as “part of a thoughtful progression toward a new market model.” Justin Peterson, CTO of Tradeweb, emphasized that this real-time collateral reuse and expanded stablecoin liquidity is more than a technical milestone—it’s a blueprint for the future of institutional finance.
The Canton Network, a layer-1 blockchain designed for institutional finance, continues to gain ground in tokenized real-world assets (RWAs). Recent strategic funding rounds, including $50 million secured from BNY, iCapital, Nasdaq, and S&P Global, complement a $135 million raise earlier this year aimed at scaling the network. The network powers tokenization platforms like Franklin Templeton’s Benji Investments and currently leads the market for tokenized RWAs, with over $370 billion represented on-chain, outpacing Ethereum, Polygon, Solana, and other public blockchains.
Link to the full details: https://cointelegraph.com/news/canton-network-second-onchain-treasury-financing-collateral-reuse