Goldman Sachs, Microsoft, Deloitte unveil interoperable blockchain network

A group of firms, including Goldman Sachs, Microsoft, Deloitte, and others, are teaming up to launch a new blockchain-based system.

The system, called the Canton Network, aims to link various institutional applications while offering better privacy and controls than existing technology. According to a statement released today, the system can achieve the scale and performance required by financial institutions.

"It creates a ‘network of networks’, allowing previously siloed systems in financial markets to interoperate with the appropriate governance, privacy, permissions, and controls required for highly-regulated industries," the statement read.

Reportedly, the Canton Network can enable financial institutions to experience a safer and reconciliation-free environment where assets, data, and cash can synchronise freely across applications. It creates opportunities for financial institutions to offer new innovative products to their clients while enhancing their efficiency and risk management.

The Canton Network will begin testing some of its capabilities in July. BNP Paribas, Broadridge, Cumberland, Digital Asset, Moody's, Paxos, and SBI Digital Asset Holdings are also participating in the network.

The network will utilise the Daml smart contract language, developed by Digital Asset to connect various applications. The project aims to give decentralised infrastructure to institutional clients while ensuring privacy.

"With the Canton Network, a digital bond and a digital payment can be composed across two separate applications into a single atomic transaction, guaranteeing simultaneous exchange without operational risk," the statement read.

"Likewise, a digital asset could be used in a collateralised financial transaction via connection to a repo or leveraged loan application."

While the technology underlying the infrastructure—including the Canton protocol and Daml smart contracts—is provided and owned by Digital Asset, the network is owned by the participating network partners and not the firm.