A second round of onchain US Treasury financing has been successfully completed by Digital Asset and a coalition of financial institutions on the Canton Network, incorporating real-time collateral reuse and increasing the variety of stablecoins involved.
The latest phase involved five transactions, building on the pilot from July which first showcased the integration of US Treasurys with the USDC stablecoin for financing and settling blockchain transactions.
In this recent trial, various stablecoins were utilized to finance positions against tokenized US Treasurys, thereby expanding the onchain liquidity accessible for financing activities.
The trial demonstrated that tokenized US Treasurys could be seamlessly transferred between parties and utilized as collateral on a real-time basis, avoiding the operational delays commonly associated with rehypothecation in traditional finance.
This initiative brought together entities such as Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global, all of which are part of the Canton Network’s Industry Working Group.
Kelly Mathieson, chief business development officer at Digital Asset — the team behind the Canton Network — stated that the experiment was “an important step toward a new market model.”
Justin Peterson, chief technology officer of Tradeweb, emphasized that “showcasing real-time collateral reuse and enhanced stablecoin liquidity is not merely a technical milestone — it serves as a blueprint for the future of institutional finance.”
Related: ‘We refused to do an ICO’: The truth behind Canton’s tokenomics
Canton Network strengthens presence in tokenized RWAs
This year, the Canton Network, a layer-1 blockchain tailored for institutional finance, has been enhancing its footprint in the tokenization arena.
On December 4, its developer Digital Asset secured around $50 million in strategic investments from BNY, iCapital, Nasdaq, and S&P Global. This new funding follows a $135 million raise from earlier this year and aims to bolster the network’s expansion initiatives.
In October, asset manager Franklin Templeton announced its plan to shift its Benji Investments platform — which tokenizes shares of the firm’s flagship US money market fund — to the Canton Network.
According to data from RWA.xyz, the Canton Network currently dominates the market for tokenized real-world assets (RWAs), with over $370 billion represented onchain, significantly outpacing prominent networks like Ethereum, Polygon, Solana, and other public chains.
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