- Microsoft, Goldman Sachs, and other top firms collaborate on Canton Network.
- Canton Network provides a framework that better suits the needs of these large companies.
- Mega companies like Deloitte will use Canton Network to build its applications.
Despite taking massive hits in 2022, financial institutions and mega firms are still interested in utilizing blockchain technology. However, under certain circumstances – it should serve their needs, such as total control, privacy, and interoperability.
While most solutions in the industry are decentralized and aren’t suited to what many firms want, Canton Network is. It introduces the industry’s first privacy-enabled interoperable blockchain designed specifically for financial institutions like Goldman Sachs.
Top Players Join Forces in Canton Network
On Tuesday, May 9, Microsoft, Goldman Sachs, and Deloitte, among other leading firms, joined forces on Canton, a blockchain network designed to connect “previously siloed” financial institutions and potentially catalyze the adoption of blockchain technology in financial markets.
Canton Network’s roster of participants includes some of the top most profitable conglomerates in the world. These companies are working together to make financial markets more transparent and interoperable.
In a statement, Canton Network shared that participants, including Deutsche Börse, Moody’s, Paxos, and others, will start working on the network in July. The network promises access to better privacy and controls than current industry standards.
This is a huge step considering many large companies have exited the cryptocurrency sector after incurring heavy losses. The initiative could serve a crucial role in making blockchain technology-powered financial services more accessible to people worldwide.
Why is Canton Network Important?
Given the rise of blockchain technology and Fintech in recent years, banks and traditional financial institutions have been developing experimental blockchain applications and testing different technologies and frameworks that better serve their purpose and standards.
Some of these experiments include tokenizing stocks, bonds, and deeds, in a secure environment, speeding up systems, and facilitating cross-border transactions. While some establishments have successfully integrated blockchain technology into their applications, they have yet to push it out to the public for greater adoption.
However, companies aren’t doing so because existing solutions struggle with being interoperable and secure at the same time. That is where Canton Network comes in.
The privacy-enabled blockchain network claims it can simultaneously offer interoperability and security without retaining control from entities, allowing these firms to connect and synchronize in “previously impossible” ways, unlocking new opportunities and innovation.
What Can Canon Network Do?
The Canton Network provides a decentralized infrastructure that bridges independent applications using a smart contract language called Daml; this includes Goldman Sachs Digital Asset Platform for issuing assets on the blockchain, Deutsche Börse Group’s D7 post-trade platform, and more.
Canton network offers a plethora of features that better serve the needs of financial institutions that back it, such as enabling financial institutions to work in a safer, reconciliation-free environment where assets, data, and cash can instantly synchronize across applications., providing data protection layers on its network, unlike other chains, and more.
Jens Hachmeister, Head of Issuer Services & New Digital Markets at Deutsche Börse Group, shared his views on Canon Network:
"The Canton Network vision strives to enable seamless connectivity across various blockchain networks in the industry. Such solutions are a key building block for future digital and distributed financial market infrastructures."
On The Flipside
- Banking giant, Goldman Sachs has ranked BTC as the best-performing asset in the world for 2023.
- Banks are reluctant to work with cryptocurrencies. The US banking system has seen a surge of bank runs in recent months. Crypto supporters are touting a decentralized alternative to fix the current system.
- US Republicans are trying to block the creation of a US Digital Dollar.
Why You Should Care
Financial Institutions collaborating on creating an interoperable solution that gives total control to the creator could eventually lead to the creation of CBDCs. While it has yet to be seen what these companies make on Canton Network, it would be interesting to see how their solution compares to other projects.
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