Digital Asset Secures New Funding to Enhance Canton Network Adoption

Summary:
Digital Asset, a provider of institutional blockchain infrastructure and creator of the Canton Network, has successfully raised approximately $50 million in strategic investments from notable institutions such as BNY, iCapital, Nasdaq, and S&P Global. This funding will boost the adoption of the Canton Network, which has already secured $135 million in previous financing rounds. The involvement of these major players highlights the growing support from key financial institutions for blockchain solutions designed for regulated markets.

Key Takeaways:

Digital Asset has raised around $50 million for the Canton Network from major investors.
The funding aims to enhance the network's adoption among institutions.
The Canton Network focuses on compliance and privacy for regulated markets, supporting trillions in tokenized assets.
Major institutions like Franklin Templeton are already utilizing the Canton Network for their tokenized funds.
Recent changes in policy from firms such as Vanguard and Bank of America indicate a warming trend towards cryptocurrency in traditional finance.

Digital Asset raises fresh funding to scale Canton Network adoption

Canton Network: A Focus on Institutional Infrastructure

The Canton Network is a public, permissionless layer-1 blockchain that emphasizes compliance and configurable privacy tailored for institutions. Digital Asset reports that Canton supports trillions of dollars in tokenized real-world assets, with over 600 institutions and validators engaged in its operations.

The recent wave of investments into the Canton Network signifies that its value proposition is appealing to established firms seeking the advantages of public blockchain technology while maintaining privacy and regulatory compliance. The Canton Network promotes itself as a "network of networks" designed specifically for regulated environments rather than for retail DeFi experimentation.

Franklin Templeton, a global asset manager managing $1.6 trillion, is already leveraging Canton’s infrastructure. In October, the firm announced its plans to migrate its Benji Investments platform, which tokenizes shares of its flagship US money market fund, to the Canton Network. This move will enable a live tokenized-fund product transition from public chains into Canton’s institutional framework.

Unlike many other blockchain projects that follow an Initial Coin Offering (ICO) approach, Canton has opted for a unique tokenomics model that prioritizes validators and applications that generate actual transaction activity, steering clear of speculative practices.

Strengthening Institutional Support

According to sources, this latest funding initiative complements Digital Asset’s earlier strategic funding round of $135 million secured this year, which involved participants like DRW, Tradeweb, Goldman Sachs, DTCC, Citadel Securities, and Paxos. These investments aim to enhance the scaling of Canton and facilitate the onboarding of more real-world assets.

Vanguard reverses its Bitcoin stance | ETF Tracker

The recent timing of this investment round is significant. Vanguard, the world’s second-largest asset manager, has announced that it will allow clients to trade crypto exchange-traded funds (ETFs) and mutual funds on its platform, marking a notable shift from its previous anti-Bitcoin stance.

Additionally, Bank of America, the second-largest bank in the US, has updated its crypto policy, suggesting a 1%–4% allocation for its wealth management clients. Meanwhile, Coinbase is partnering with major US banks on initiatives related to stablecoins, custody, and settlement, providing essential services for institutions that prefer not to develop in-house solutions.

The successful collaboration of banks, a trading exchange, a data and index powerhouse, and a wealth-tech firm as investors in one blockchain stack signals a robust shift towards comprehensive on-chain market infrastructure in the industry’s future, according to Brian Ruane, head of Global Clearing, Credit Services, and Corporate Trust at BNY.