A comprehensive pilot test utilising blockchain technology has been concluded by prominent financial firms such as BNY Mellon, Cboe Global Markets, and Goldman Sachs, according to a Bloomberg report.
TakeAway Points:
- A thorough pilot test using blockchain technology has just been concluded.
- Asset managers, banks, and participant exchanges in the trial programme.
- The goal of simulated transactions is to highlight the advantages of blockchain.
Blockchain Pilot Test
Institutional investors used distributed ledger technology to carry out more than 350 simulated transactions in areas like margin management on the Canton network, digital cash, fund registration, tokenized assets, securities lending, and repo.
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The announcement reported that, since then, 155 users from 45 significant organisations have shown that they can settle disputes across 22 permissioned blockchains linked to the Canton Network’s ledger.
“Over a four-day period, participants were invited to try 22 dApps comprising five fund registries, five cash registries, three bond registries, three trading, four margin, and two financing apps, to exchange tokenized securities, money market funds, and deposits across applications.”
the firm stated.
Canton Network
The Canton Network is an interoperable blockchain network with privacy features that enables real-time transfers of regulated assets, data, and money across financial institutions.
“With the Canton Network, a digital bond and a digital payment can be composed across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk,” according to a press release from Canton. It added, “Likewise, a digital asset could be used in a collateralized financial transaction via connection to a repo or leveraged loan application.”
At the moment, Microsoft, Moody’s, S&P Global, Deloitte, Deutsche Börse, and Moody’s are members of the Canton Network.
Furthermore, tokenization has attracted a lot of attention from both celebrities and institutional investors in the last year.
On February 7, the local cryptocurrency exchange OSL and the Hong Kong branch of the Swiss multinational bank UBS tokenized an options call warrant for the stock of Xiaomi, the leading Chinese smartphone manufacturer, on Ethereum.
In addition, a few weeks later, the PLANET token’s environmental nonprofit sponsor, Join The Planet, partnered with Argentine football legend Lionel Messi to announce the launch of a tokenized product.
