Canton Network Trial Enables Instant Reuse of Tokenized U.S. Treasurys
Digital Asset and an industry working group of banks and trading firms completed a second Canton Network trial showing tokenized U.S. Treasurys can be moved between counterparties and reused instantly as blockchain collateral. The five-transaction test expanded a July USDC-only pilot by adding multiple stablecoins (including USDC) to broaden digital cash options for financing. Participants included Bank of America, Citadel Securities, Cumberland, DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale and M1X Global. The trial demonstrated real-time collateral reuse on shared infrastructure, reducing manual rehypothecation delays, widening onchain liquidity, and simplifying collateral management. Canton Network now hosts large volumes of tokenized real-world assets, and Digital Asset has attracted new strategic funding from institutional backers. The test aligns with heightened regulatory attention (including an OCC letter clarifying national banks’ roles in crypto trading), underscoring accelerating institutional adoption of tokenized RWAs and expanded stablecoin liquidity—developments traders should monitor for implications to funding costs, liquidity depth, and institutional onchain activity.
Neutral
The trial is primarily an infrastructure and institutional-adoption development rather than a direct protocol token event, so immediate price impact on major crypto assets is limited—hence a neutral classification. Positive implications include expanded stablecoin liquidity (beneficial for funding markets and onchain activity) and faster collateral reuse, which can reduce operational frictions and slightly improve market efficiency. That may lower funding costs for traders and increase onchain lending/leverage capacity over time. However, these are incremental, structural improvements unlikely to cause sharp short-term price moves in native cryptocurrencies. Long term, increased institutional use of tokenized RWAs and stablecoins could support greater demand for onchain settlement infrastructure and stablecoin circulation, gradually bullish for related token ecosystems. Short-term effects should be muted; market reaction will depend on adoption scale, regulatory clarity, and how much capital migrates onchain.