Microsoft, Goldman Sachs and others collaborate to realize interoperability of financial systems with blockchain

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Realizing interoperability of financial systems

Blockchain-related company Digital Asset announced plans to launch a new blockchain network, Canton Network, on the 9th.

Canton Network itself launched on the 9th. The network has privacy features and was developed to enable financial system interoperability. Designed to be used on corporate and institutional assets, the purpose of the launch is to increase efficiency and foster innovation.

We’re excited for @CantonNetworkthe industry’s first privacy-enabled interoperable blockchain network designed for institutional assets and built to unlock the potential of synchronized financial markets. #PowerfulConnections https://t.co/rlfKxyRLLT pic.twitter.com/Ha48jGUquo

—Digital Asset (@digitalassetcom) May 9, 2023

At present, the following companies have decided to participate in this project. Participating companies introduced in this announcement are 30 companies including the following.

microsoft
SBI Digital Asset Holdings
goldman sachs
Paxos
Cboe Global Markets
Moody’s
BNP Paribas
S&P Global

Canton Network provides a decentralized infrastructure and functions as a “network of networks”. The aim is to enable interoperability of previously independent financial systems.

By participating in the network, financial institutions can synchronize assets, data, cash, etc. between systems. Possible use cases include recording and settlement of assets, and financial transactions using collateral. By using the Canton Network, we will increase efficiency and explore opportunities to provide new financial products while managing risks.

In this announcement, Fernando Vazquez Cao, CEO of SBI Digital Asset Holdings, commented as follows.

We look forward to using distributed ledger technology to interoperate networks with trusted financial institutions.

You will be able to increase efficiency and create new possibilities.

In addition, Microsoft seems to participate as a supporting partner of Canton Network from the comment of the person in charge.

Network features

Canton Network is a network that allows applications built in the smart contract language “Daml” to interoperate. Realize the interoperability of independent systems under appropriate governance and privacy design and management so that they can be used in highly regulated areas.

In this announcement, he pointed out the reason why the adoption of existing blockchains with smart contract functions has not progressed among financial institutions. There are mainly the following three major challenges, which Canton Network claims to be able to overcome.

Lack of privacy and data management features
Management and interoperability are incompatible
Not scalable

According to Digital Asset’s official website, Goldman Sachs, for example, is already using Daml for its tokenization infrastructure. Canton Network will enable interoperability of these infrastructures in the future. Network participants plan to begin testing in July.

What is a smart contract

Refers to a mechanism for enforcing a contract according to pre-programmed conditions. When concluding various contracts, there are many cases where clerical work such as intermediary and contract drafting is required. is expected.

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