Goldman Sachs Tests Enterprise Blockchain for Tokenized Assets

Source: Stax Payments

A group of banks and asset firms, including Goldman Sachs, have tested Digital Asset’s Enterprise Blockchain, which is part of the Canton Network. The Canton pilot allowed 15 asset managers, 13 banks, four custodians, and three exchanges to transact and settle assets through tokenization. According to a press release by Digital Asset, the group combined over 350 successful transactions via the blockchain.

“The successful execution of over 350 simulated transactions proved how a network of interoperable applications can seamlessly connect to enable secure, atomic transactions across multiple parts of the capital markets value chain,” the firm said in the release. The statement continues: “It also demonstrated the potential benefits of using such a network to reduce counterparty and settlement risk, optimize capital, and enable intraday margin cycles.”

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Top Banks Grow Interest in Blockchain Technology for Tokenization

As top asset firms and banks grow interest in blockchain technology, the surge is being fueled by the desire to practice tokenization. The following firms participated in the pilot program:

  • abrdn
  • Baymarkets
  • BNP Paribas
  • BOK Financial
  • Cboe Global Markets
  • Commerzbank
  • DTCC
  • Fiùtur
  • Generali Investments
  • Harvest Fund Management
  • IEX
  • Nomura
  • Northern Trust
  • Pirum
  • Standard Chartered
  • State Street
  • Visa
  • Wellington Management, with Deloitte acting as an observer and Microsoft as a supporting partner.
A group of banks and asset firms have tested Digital Asset's Enterprise Blockchain, a part of the Canton Network, practicing tokenization.

Over a four-day period, the participating partners tried 22 dApps, comprising five fund registries, five cash registries, three bond registries, three trading, four margin, and two financing apps. With the Enterprise Blockchain, the firms exchanged tokenized securities and money market funds and successfully made deposits across applications.

Digital Asset CEO Yuval Rooz praises the project and believes it is the next step towards further innovation in tokenization. “Canton allows previously siloed financial systems to connect and synchronize in previously impossible ways while abiding by the current regulatory guardrails. We’re proud to facilitate the pilot and look forward to working with the pilot participants to continue identifying additional use cases where the Canton Network can be leveraged.”