- Moody’s, Deloitte and Microsoft have joined other leading tech and financial firms to back the development of Canton Network
- Canton Network focuses on securely linking financial firms and systems using blockchain technology
- Participating financial firms said that the decentralized platform will help them create innovative products and services
Moody’s, Deloitte and Microsoft have joined other leading tech and financial institutions to back the development of a financial blockchain called Canton Network. The permissioned decentralized platform focuses on linking financial firms and systems using blockchain technology, which participating institutions said will help them create innovative products and services. The network comes roughly a week after Deloitte unveiled blockchain-based reusable digital credentials that can be used in the banking and decentralized finance (DeFi) worlds.
Decentralized but Regulated
A statement posted on the platform’s website noted that the current traditional finance space is siloed thus preventing interoperability, innovation and effectiveness. According to participating institutions, blockchain technology allows conventional financial systems to be synchronized consequently enhancing risk management.
The blockchain platform employs smart contract capability provided by Digital Asset, one of the 30 Canton Network participants that include Paxos, Goldman Sachs and Deutsche Börse Group. According to Digital Asset CEO Yuval Rooz, the network links financial institutions globally without sacrificing the safety of a regulated financial system.
Being a permissioned protocol, it will enforce governance, controls and privacy measures identical to those employed in the traditional financial world. According to the statement, examples of a possible application for the protocol include combining “a digital bond and a digital payment […] into a single atomic transaction” even when the two are on different apps.
Participants not Strangers to Blockchain
Most of the participants have already interacted with the blockchain space on individual projects. For example, Microsoft is testing a Web 3.0 wallet inside its Edge browser while Goldman Sachs has in the past indicated plans to launch a Bitcoin trading desk.
The coming together of the 30 firms to support Canton Network shows that traditional firms still see the potential of blockchain technology.