Read this article on bsc.news The banks and firms behind Canton fall into three groups. Digital Asset built the network. Institutions such as DTCC, Euroclear, Goldman Sachs, BNY, HSBC and BNP
The banks and firms behind Canton fall into three groups. Digital Asset built the network. Institutions such as DTCC, Euroclear, Goldman Sachs, BNY, HSBC and BNP Paribas help govern it through the Canton Foundation. Firms such as Broadridge, Tradeweb and Virtu use it for live market work.
Two recent events put that group in focus. DTCC opened its tokenization service on October 28, and SEC staff said on November 3 that they view Canton Coin (CC) as a digital commodity. CC still trades near $0.097.
Canton is a public Layer 1 blockchain built for regulated finance. Digital Asset, led by CEO Yuval Rooz, develops it. Its $355 million June round was led by a16z crypto and included BNP Paribas, HSBC, ABN Amro and Citadel Securities. Goldman Sachs, BNP Paribas, Deutsche Börse and Microsoft joined Canton’s 2023 launch.
Its main feature is selective disclosure: each party sees only the parts of a trade that concern it. A shared layer, the Global Synchronizer, allows atomic settlement, where both sides of a trade complete together or not at all.
Governance sits in two places.
The Foundation has more than 100 members. DTCC’s Johnna Powell chairs its board, and Digital Asset holds a seat. The Foundation hosts committees but cannot change protocol rules on its own. Its top membership tier includes:
Super Validators help run the Global Synchronizer. Canton had about 60 as of September 30. They act through 13 node operators with one vote each, and protocol changes need two-thirds approval. Digital Asset runs two of the 13 nodes.
Current names include Nasdaq, Broadridge, Visa, Circle and Franklin Templeton. Third-quarter approvals included a16z crypto, LSEG, Marex and Paxos.
These recent examples show real use:
Only partly. DTCC’s service covers 34 securities worth about $30 trillion. Twenty firms have signed on, including Bank of America, BNP Paribas, Citi, Fidelity, JPMorgan, Morgan Stanley, State Street and UBS. Tokens are backed one-for-one, and official ownership records stay with DTC.
DTCC CEO Frank La Salla said the service creates the foundation for “responsible institutional adoption at scale.” But it also runs on Besu, DTCC’s private blockchain, and Stellar and Circle’s Arc are planned for 2027.
Sam Daodu, crypto editor at 24/7 Wall St., notes that firms can use Besu and avoid public-token systems entirely. He reads the sign-ups as support for DTCC, not for CC.
Institutional use does not automatically create token demand. Under Canton’s tokenomics, fees are priced in dollars and paid by burning CC, while new CC is minted as rewards.
In September, Canton burned 443 million CC for traffic and minted 648 million, according to Alea Research. Burns covered about 68% of new supply, so supply is still growing. Third-quarter fees were $157.5 million, down 18% from the prior quarter.
Super Validators approved CIP-0129 in October. It will make dedicated synchronizers, which are private networks, burn CC at $60 per MB instead of paying license fees. The start is estimated for Q1 2027, with volume discounts around Q3 2027.
CC traded near $0.097 on November 4, up about 3% to 4% in 24 hours.
A no-action letter says staff will not recommend enforcement. This one covers programmatic minting and relies on Digital Asset’s stated facts. It reaches no legal conclusion and approves no ETF.
Miles Jennings, a partner at a16z, said the SEC’s March token taxonomy created a clear pathway out of securities laws.
Canton supports private transactions, atomic settlement, trillion-dollar monthly repo volume and tokens tied to DTC-held securities. Banks and market operators share its governance. In September, burns covered about 68% of new CC.
