Digital Asset and a group of financial institutions have completed a second round of on-chain US Treasury financing on the Canton Network, introducing real-time collateral reuse and expanding the number of stablecoins involved.
The latest phase saw five transactions executed, building on the July pilot, which for the first time demonstrated that US Treasury bonds and the USDC (USDC) stablecoin could be combined to fund and settle transactions on the blockchain.
In the latest trial, the companies used multiple stablecoins to fund positions against tokenized US Treasurys, expanding the pool of onchain liquidity available for funding transactions.
The trial demonstrated that tokenized U.S. Treasury bonds could be exchanged between counterparties and reused as collateral in real time, bypassing the operational delays typically associated with rehypothecation in traditional finance.
The effort brought together 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 company behind the Canton Network – said in a statement that the test was “part of a thoughtful progression towards a new market model.”
Justin Peterson, chief technology officer of Tradeweb, added that “demonstrating real-time collateral reuse and expanded stablecoin liquidity isn’t just a technical achievement – it’s a blueprint for what the future of institutional finance could look like.”
Canton Network is expanding its footprint in tokenized RWAs
The Canton Network, a layer-1 blockchain built for institutional finance, expanded its presence in the tokenization sector this year.
On December 4, developer Digital Asset received approximately $50 million in strategic support from BNY, iCapital, Nasdaq and S&P Global. The new funding follows a $135 million increase earlier this year and is intended to support the network’s scaling efforts.
In October, asset manager Franklin Templeton said it would migrate its Benji Investments platform – which tokenizes shares of the firm’s flagship US money market fund – to the Canton Network.
Data from RWA.xyz also shows that the Canton Network now leads the market for tokenized real-world assets by a wide margin, with more than $370 billion represented on-chain, far surpassing popular networks such as Ethereum, Polygon, Solana and other public chains.
Top Blockchains for RWA. Source: RWA.xyz