Goldman Sachs, Microsoft & Co. are planning a joint blockchain network

According to Canton Network participants, the network offers better privacy and control than currently available systems. In addition, according to the companies involved, the blockchain system will reach a standard that is appropriate for financial institutions.

Apart from the companies already mentioned, Digital Asset, ASX, BNP Paribas, Broadridge, Deutsche Boerse Group, Cumberland, Moody’s, Paxos and SBI Digital Asset Holdings are also at the start.

Blockchain apps created by Daml are linked by the network. Banks and other large companies have been developing and testing blockchain applications for years. Always with the intention of simplifying and accelerating complex processes.
“Such solutions are an important building block for future digital infrastructures and distributed financial market infrastructures,” says Jens Hachmeister from the Deutsche Börse Group Coindesk.com.

But so far, blockchain networks have not been widely adopted. One possible reason for this is that the blockchain systems created by different organizations cannot connect to each other.

According to Canton, the new network can enable this connection without companies having to relinquish control.

“The Canton Network is a powerful response to industry demands for a solution that leverages the potential of blockchain while preserving fundamental privacy requirements in institutional finance,” said Chris Zuehlke, Partner at DRW and Global Head of Cumberland on Coindesk .com

Canton can connect applications built with Daml to Deutsche Boerse Group’s D7 post-trade system. If more applications are created with this programming language, the network can continue to grow.

The initiative has won the support of 30 companies. However, there have been several blockchain consortia with well-known participants in the financial sector in recent years.

These projects are very complex. Because the new technologies have to be introduced in numerous companies that are already active in the markets.

In some cases, the complexity of the projects has already led to delays, pauses or even cancellations. Australia’s main exchange operator, ASX, announced in November that it was reconsidering plans to replace its settlement and clearing platform with a blockchain system. The system should be built in partnership with Digital Asset.