Goldman Sachs, Deloitte, Microsoft and Cboe Global Markets are collaborating in a new blockchain system to connect separate institutional applications.
By linking disparate institutional applications, this system could potentially encourage broader technology adoption in financial markets.
Encouraging broader adoption
To enhance privacy and improve controls, a group of companies will begin testing the Canton Network in July 2023.
The network aims to provide a standardized system that meets the needs of financial institutions. Firms involved, including BNP Paribas, Moody’s, and Deutsche Börse Group. They believe the system will offer better privacy and scalability compared to current options.
Along with Digital Asset, ASX, Cumberland, Paxos, and SBI Digital Asset Holdings, they will use Daml, a smart-contract language created by blockchain startup, Digital Asset, to create dapps linked on the Canton Network.
The move would likely encourage broader adoption of blockchain technology in financial markets. At the same time, it could improved efficiency and transparency across the sector.
Blockchain supports 30 firms
The launch of the Canton Network, which has been integrated by around 30 firms, including Goldman Sachs and Microsoft, looks to impact the financial industry.
The platform, which will link various institutional applications, offers better privacy and controls than currently available.
Additionally, it could be more scalable and offer standards required by financial institutions. By using Daml, dapps launched on Canton can interconnect to existing protocols. Moreover, developers expect the Canton ecosystem to expand as more Daml-based dapps are deployed.
According to Jens Hachmeister, head of issuer services and new digital markets at Deutsche Börse Group, systems like Canton are a crucial building block for future digital and distributed financial market infrastructures.
The integration of blockchain technology in the financial industry is becoming more common as companies begin realize its potential to streamline processes and reduce costs.