- Digital Asset secures $135M to boost adoption of the privacy-focused Canton Network.
- Canton Network provides configurable privacy to tackle blockchain transparency challenges.
- New funding expands Canton Network’s integration of real-world assets across sectors.
Digital Asset, which is building the privacy-centered Canton Network, said on Tuesday that it had raised $135 million in a funding round. DRW Venture Capital and Tradeweb Markets led the investment. Additional Institutional investors were BNP Paribas, Circle Ventures, Citadel Securities, and Paxos. The investment will enable the Canton Network to be adopted faster in the institutional and decentralized finance industries.
Canton Network aims to offer configurable privacy to solve one of the challenges that blockchain adoption faces. Over the years, financial institutions, particularly banks, have faced the challenging task of striking a balance between transparency and confidentiality.
Enhancing Privacy and RWA Integration
The Canton Network of Digital Assets addresses this issue by allowing institutions to choose the level of privacy they require for their transactions and assets. This aspect has drawn significant attention from financial giants such as Goldman Sachs and BNY Mellon, who are testing real-world assets (RWAs) on the network.
The new capital will accelerate the integration of RWAs within the Canton Network. The platform already includes a large variety of asset classes, such as bonds, money market funds, commodities, repurchase agreements (repos), mortgages, and insurance products.
It will also enhance the network’s capacity to process many billions of dollars in RWAs even faster. Currently, the network is in the process of aligning with key partners, BNP Paribas, DRW, Goldman Sachs, and others. Since the network’s launch, these partners have been actively engaged in testing and development.
Yuval Rooz, CEO of Digital Asset, highlighted the resilience of the networks. He explained that Canton enables assets to be graded on a scale of privacy levels. An asset on Canton can be completely public, such as Ethereum, or it can be completely private, and its existence unknown. The flexibility of having assets of varying degrees of privacy on the same network offers significant customization and flexibility to financial institutions.
So I can have an asset on Canton with no privacy. That would look like Ethereum. On the same network, I can have an asset with full privacy that you wouldn’t even know exists.
Don Wilson, founder and CEO of DRW, reported that key players from the crypto and conventional financial sectors have become part of Digital Asset. He mentioned that real-world assets using the Canton Blockchain amount to trillions of dollars. This round of financing gives impetus to the firm. It establishes Canton as the protocol of choice for international collateral movement.
The funding also highlights the growing concerns about privacy and compliance in the blockchain sphere. Concerns about data privacy and the risks of violating regulations have deterred financial institutions from adopting blockchain technology. The privacy-first architecture enables institutions to implement blockchain technology through the Canton Network, addressing these issues.
Related: Gemini Enables SOL Staking, DFDV Stock Tokenized on Solana
Strengthening Market Presence and Privacy-Driven Growth
The investment round further enhances the company’s market presence. The network is rapidly expanding, with nearly 400 participants from both traditional finance and the decentralized finance sector. The support of leading institutions indicates the increasing interest in the vision of the future of financial infrastructure developed by Digital Asset.
Additionally, unlike other traditional blockchain networks, Canton allocates 70% of the block reward to developers and users. Such a model would strike a balance between long-term growth and incentives, creating an ecosystem that is both sustainable and rewarding for those involved.
Canton network is establishing itself as a significant component of the blockchain infrastructure. The network is designed to meet the evolving needs of financial institutions worldwide due to its unique blend of privacy, scalability, and compliance.
