P2P.org has been established as a validator on the Canton Network, a blockchain platform designed for institutional finance that manages over $4 trillion in tokenized assets. In its role as a validator, P2P.org will run nodes responsible for verifying and recording transactions within the network.
Launched in May 2023, Canton is a blockchain solution created to facilitate regulated institutions, focusing on the tokenization of real-world assets (RWA), interoperability, and compliance with regulatory standards.
This development brings P2P.org — a staking infrastructure provider managing more than $10 billion in assets across over 40 blockchain networks — into a growing ecosystem that includes notable participants such as Goldman Sachs, JPMorgan, Citi, Santander, Bank of America, HSBC, and BNP Paribas.
Jonathan Reisman, product manager at P2P.org, informed Cointelegraph that many blockchains weren’t built with institutional needs in mind, which has hindered adoption in traditional finance.
However, Reisman stated that networks like Canton facilitate “bringing firms into an ecosystem where the tokenization of assets, secure trading, and innovations such as BTC wrapping can be executed in accordance with institutional standards.”
He added, “Validators only process transactions they are involved in and maintain them on their own ledger, making privacy more straightforward and suitable for institutions.”
Related: P2P.org expands staking services with TON integration
Institutional staking on the rise
On most proof-of-stake blockchains, validators earn rewards for securing the network by staking tokens, meaning they lock up cryptocurrencies in return for yields.
Staking has emerged as a key trend in the industry this year, propelled by a growing interest from institutions in networks such as Ethereum and other public blockchains.
Unlike the proof-of-stake model that compensates validators with staking yields, the Canton Network distributes its native token, Canton Coin, based on how participants contribute to network activity. Infrastructure providers receive 35% of the distribution, application developers get 50%, and users obtain 15%.
According to Canton, this design aims to link rewards to actual use and engagement on the network, with each application having the flexibility to define its own level of openness and confidentiality.
Similar to Canton, more protocols are building blockchain infrastructure to meet institutional demands. In February, Lido introduced its v3 upgrade featuring “stVaults,” modular contracts designed to give institutions enhanced control and compliance options, responding to increasing institutional demand.
More recently, Anchorage Digital implemented institutional custody and staking for Starknet’s STRK token, launching with an initial yield of 7.28% APR.
Regulatory progress in the US is driving increased demand for crypto yield among investors.
In August, the Securities and Exchange Commission (SEC) released new guidance regarding liquid staking, which enables investors to deposit cryptocurrencies with a provider and receive “receipt tokens” for trade or use in decentralized finance (DeFi) while their assets are staked.
The SEC clarified that these receipt tokens do not qualify as securities offerings under specific conditions, a ruling that industry leaders viewed as beneficial for both DeFi and institutions.