Canton Network Completes 2nd Onchain US Treasury Finance Round

Canton Network Advances Onchain US Treasury Financing with Real-Time Collateral Reuse and Multi-Stablecoin Integration

  • Digital Asset and financial institutions completed a second onchain US Treasury financing round on the Canton Network.
  • The trial introduced real-time collateral reuse and included multiple stablecoins for financing tokenized US Treasurys.
  • The Canton Network leads the market in tokenized real-world assets (RWA), with over $370 billion represented onchain.
  • Prominent firms such as Bank of America, Citadel Securities, and Société Générale participated in the trial.
  • Digital Asset recently secured about $50 million in funding to support the Canton Network’s growth.

Digital Asset along with a consortium of financial institutions completed a second phase of onchain US Treasury financing on the Canton Network. The effort focused on enabling real-time collateral reuse and expanding the variety of stablecoins involved. This advancement follows an initial pilot conducted in July that combined US Treasurys and the USDC stablecoin for blockchain-based financing and settlement. The project demonstrated the technology’s potential to streamline and accelerate financing processes.

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The recent phase executed five transactions, allowing tokenized US Treasurys to be passed between counterparties and reused instantly as collateral. This reduces delays commonly seen in traditional rehypothecation, a process where collateral is repledged to secure multiple obligations. The trial incorporated multiple stablecoins to increase the liquidity pool supporting transactions onchain.

The initiative included participation from major firms including Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global. These members belong to the Canton Network’s Industry Working Group. According to Kelly Mathieson, chief business development officer at Digital Asset, this test marks “part of a thoughtful progression toward a new market model.” Tradeweb’s chief technology officer, Justin Peterson, described the outcome as a “blueprint for what the future of institutional finance can look like.”

The Canton Network is a layer-1 blockchain designed for institutional finance, and it continues to expand its footprint in tokenized real-world assets (RWA). In December, Digital Asset raised approximately $50 million in strategic investment from firms including BNY Mellon, iCapital, Nasdaq, and S&P Global. This follows a $135 million fundraising earlier in the year to support network scaling. Additionally, in October, asset manager Franklin Templeton announced plans to migrate its Benji Investments platform, used for tokenizing shares of its flagship US money market fund, onto the Canton Network.

Data from RWA.xyz shows that the Canton Network leads in tokenized real-world assets, with over $370 billion onchain. This is significantly higher than totals on networks such as Ethereum, Polygon, and Solana.

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