Global Banks in Massive Blockchain Pilot Test

Several major financial institutions, such as Goldman Sachs, BNY Mellon, and Cboe Global Markets, have recently completed a large-scale pilot test using blockchain technology. This test, conducted on Digital Asset Holdings’ Canton network, involved over 350 simulated transactions by institutional investors across various areas including tokenized assets, fund registry, digital cash, securities lending, and margin management.

The pilot test had the participation of 15 asset managers, 13 banks, four custodians, three exchanges, and stablecoin issuer Paxos Trust. 155 participants from 45 major organizations demonstrated settlement across 22 permissioned blockchains connected to the Canton network. During the four-day period of the test, participants had the opportunity to try out different decentralized applications (dApps) related to fund registries, cash registries, bond registries, trading, margin, and financing. These applications allowed for the exchange of tokenized securities, money market funds, and deposits.

The Canton Network, created in March 2023, is a blockchain network designed specifically for institutional investors. It enables financial institutions to securely and efficiently transfer regulated assets, data, and cash between each other in real-time. This blockchain network guarantees simultaneous exchange without operational risk by allowing the composition of digital bonds and payments across separate applications into a single atomic transaction. It also enables the use of digital assets in collateralized financial transactions through connections to repo or leveraged loan applications.

Current participants in the Canton Network include well-known companies such as Deloitte, Deutsche Börse Group, Microsoft, Moody’s, and S&P Global. The concept of tokenization has gained significant attention from institutional investors and even celebrities over the past year. For instance, UBS’ Hong Kong subsidiary recently tokenized an options call warrant of Xiaomi’s stock on Ethereum, and soccer legend Lionel Messi partnered with an environmental nonprofit organization to release a tokenized product called PLANET.

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