Digital Asset and several financial firms have completed another blockchain test using the Canton Network.
The goal was to determine how US Treasury assets, represented as digital tokens, could be reused more efficiently as collateral.
The group carried out five transactions in this second phase. It followed an earlier test in July, which first showed that tokenized US Treasurys could be paired with the USDC
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This new round expanded the experiment by using multiple stablecoins, which increased the types of digital cash available for financing.
During the trial, participants could move tokenized Treasury assets between parties and reuse them as collateral instantly. This process eliminated the slow, manual steps typically required to reuse collateral in traditional markets.
The project involved several institutions, including Bank of America, Citadel Securities, Cumberland DRW, Virtu Financial, Société Générale, Tradeweb, Circle, Brale, and M1X Global. All are members of the Canton Network’s Industry Working Group.
Kelly Mathieson, chief business development officer at Digital Asset, said the test marked “part of a thoughtful progression toward a new market model”.
Meanwhile, the Office of the Comptroller of the Currency (OCC) released a letter on December 9 that clarifies the role national banks may play in crypto trading. What does the letter cover? Read the full story.
