Goldman Sachs and BNY Mellon Lead Financial Institutions in Testing Blockchain Network
Goldman Sachs and BNY Mellon are at the forefront of a groundbreaking initiative to test the impact of a new blockchain network on the capital markets. The Canton Network, developed by Digital Asset Holdings, has recently completed a pilot program involving 155 participants from 45 major financial institutions.
The pilot program, which launched in May 2023, provided participants with 22 decentralized applications (dApps) that facilitated various transactions such as fund registry, asset tokenization, securities lending, repo, digital cash, and margin management. All the dApps were interoperable via the Canton Network’s testnet.
According to Digital Asset Holdings, participants completed 350 transactions through the dApps, showcasing the potential for real-time settlement and immediate reconciliation across counterparty systems while adhering to regulatory requirements.
The pilot involved a diverse range of participants, including asset managers, banks, custodians, exchanges, and payment providers. Notable participants included BNP Paribas, Standard Chartered, State Street, Wellington Capital, IEX exchange, DTCC, Visa, and Paxos Trust.
Digital Asset Holdings aims to address the trade-off between privacy and interoperability that has hindered blockchain adoption in the financial sector. The company’s CEO, Yuval Rooz, emphasized the importance of privacy controls in operating within a safe regulatory environment.
While Digital Asset Holdings has faced challenges in the past, such as the failed blockchain project with the Australian Stock Exchange, the company remains committed to driving institutional blockchain adoption. The success of the Canton Network pilot marks a significant milestone in the advancement of blockchain technology in the capital markets.
For more information on the Canton Network pilot and its implications for the financial industry, visit the source link below.
