Goldman, BNY Mellon, Others Test Interbank Blockchain Network
- Banks, asset managers, exchanges among pilot participants
- Simulated transactions aim to show case benefits of blockchain
The goal is to explore potential benefits, including reducing counterparty and settlement risks and optimizing capital.
Photographer: George Pachantouris/Moment RF/Getty ImagesGoldman Sachs Group Inc., BNY Mellon, Cboe Global Markets and several other firms completed a series of pilot tests on a blockchain network that connects different banks and financial institutions, in one of the largest-scale of such experiments in capital markets.
The network, called Canton Network, was launched last May by the startup Digital Asset Holdings. Participants executed more than 350 simulated transactions on blockchain for tokenized assets, fund registry, digital cash, repo, securities lending and margin management. The goal is to explore potential benefits, including reducing counterparty and settlement risks and optimizing capital.