Large-Scale Blockchain Pilot Testing Involves Global Banking Institutions

Crypto News– Major financial institutions, such as Goldman Sachs, BNY Mellon, and Cboe Global Markets, have successfully concluded a large-scale pilot test utilizing blockchain technology.

Large-Scale Blockchain Pilot Testing Involves Global Banking Institutions

According to a report by Bloomberg on March 12, institutional investors engaged in over 350 simulated transactions using distributed ledger technology across various areas including tokenized assets, fund registry, digital cash, repo, securities lending, and margin management. This extensive testing took place on the Canton network, which was launched in May 2023 by the startup Digital Asset Holdings. The pilot test boasted participation from 15 asset managers, 13 banks, four custodians, three exchanges, and the stablecoin issuer Paxos Trust.

On the same day, the Canton Network announced that 155 participants from 45 major organizations had demonstrated settlement across 22 permissioned blockchains connected to its ledger. The network provided participants with access to 22 decentralized applications (dApps) spanning fund registries, cash registries, bond registries, trading platforms, margin management tools, and financing applications, enabling the exchange of tokenized securities, money market funds, and deposits.

The Canton Network, designed for institutional investors, offers a privacy-enabled interoperable blockchain network. This blockchain facilitates the seamless movement of regulated assets, data, and cash between financial institutions in real time. According to Canton, the network enables the composition of digital bonds and payments across separate applications into a single atomic transaction, ensuring simultaneous exchange without operational risk. Furthermore, digital assets can be utilized in collateralized financial transactions via integration with repo or leveraged loan applications.

Notable participants in the Canton Network include Deloitte, Deutsche Börse, Microsoft, Moody’s, and S&P Global.

Over the past year, tokenization has garnered substantial interest from both institutional investors and celebrities. For instance, on February 7, the Hong Kong subsidiary of UBS tokenized an options call warrant for the stock of Chinese smartphone giant Xiaomi on Ethereum in collaboration with local crypto exchange OSL. Additionally, Argentine soccer legend Lionel Messi announced the release of a tokenized product in partnership with Join The Planet, an environmental nonprofit organization behind the PLANET token.