Goldman Sachs, BNY Mellon Test Enterprise Blockchain for Tokenized Assets

Major financial institutions collaborate on a blockchain pilot to explore the potential of tokenized assets in capital markets.

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  • Digital Asset’s Canton Network successfully completes a test with major banks and asset managers.
  • Over 350 simulated transactions were executed to demonstrate interoperability and security.
  • The pilot aimed at reducing counterparty risk, optimizing capital, and enabling intraday margin cycles.
  • Participants included industry giants like Goldman Sachs, BNY Mellon, and Visa among others.

The financial industry is witnessing significant strides towards integrating blockchain technology into its core operations.

In a recent development, Digital Asset announced the completion of a comprehensive test on its Canton Network.

This trial saw participation from leading entities such as Goldman Sachs, BNY Mellon, DRW, Oliver Wyman, and Paxos.

The initiative aimed to assess the feasibility of transacting and settling tokenized assets across various market segments including..

  • fund registry services
  • digital cash platforms
  • repo agreements
  • securities lending arrangements, and
  • margin management systems.

This collaborative effort involved an extensive list of participants beyond those initially mentioned.

Among them were..

  • abrdn;
  • Baymarkets;
  • BNP Paribas;
  • BOK Financial;
  • Cboe Global Markets;
  • Commerzbank;
  • DTCC;
  • Fiùtur;
  • Generali Investments;
  • Harvest Fund Management;
  • IEX Group Inc.;
  • Nomura Holdings Inc.;
  • Northern Trust Corporation;
  • Pirum Systems Limited.;
  • Standard Chartered PLC.;
  • State Street Corporation.;
  • Visa Inc.,
  • Wellington Management Company LLP.,

..with Deloitte serving as an observer role in this project while Microsoft acted as a supporting partner.

The execution of over 350 simulated transactions throughout this pilot underscored the network’s capacity for facilitating secure atomic transactions that span multiple facets of the capital markets value chain.

Such capabilities are poised to significantly reduce risks associated with counterparties and settlements while also offering avenues for capital optimization alongside enabling more frequent margin cycles within trading days.

Canton’s framework aims at bridging gaps between isolated financial systems by fostering connections that comply with existing regulatory frameworks yet allow synchronization in ways previously deemed unachievable.

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