Canton Network adds liquidity providers to collateral initiative
17 July 2025 US
Image: Julia/stock.adobe.com
Canton Network has welcomed the addition of four digital asset liquidity providers B2C2, Cumberland DRW, FalconX, and GSR, to its on-chain collateral initiative.
Launched in January, the project will use the Canton Network鈥檚 privacy capabilities to create an on-chain collateral and margin management solution for bilateral derivatives.
The move aims to address inefficiencies and constraints in the crypto derivatives market, which the firm says stems from the lack of a comprehensive and accessible regulatory framework.
According to the Canton Network, the new additions join Flowdesk and QCP as design partners, providing expertise on application requirements.
The application will be open to all OTC bilateral derivatives traders upon its launch in the third quarter.
Georg Schneider, head of financial products at Digital Asset, says: 鈥淲e鈥檙e pleased to welcome these new partners to the Canton Network as we expand the scope and impact of our on-chain margining initiative.
鈥淭his will serve the demand for enhanced privacy and capital-efficient infrastructure, and prove out the use case for traditional financial derivatives markets.鈥�
The collaboration aims to deliver a solution with several key capabilities, including on-chain collateral agreements encoded as smart contracts.
According to the Canton Network, this will enable the automatic execution and enforcement of terms in line with International Swaps and Derivatives Association (ISDA) credit support annex (CSA) initial and variation margin compliance requirements.
Cactus Raazi, CEO Americas at B2C2, comments: 鈥淎t B2C2, we believe the widespread adoption of digital assets depends on infrastructure that matches traditional finance standards. Canton's on-chain collateral solution is a crucial advancement, boosting capital efficiency, automation, and privacy in bilateral derivatives.鈥�
Using the Canton Network, parties gain real-time access to data shared only among transaction participants 鈥� allowing for streamlined automated margin workflows, instant tokenised collateral pledging, and improved dispute resolution, the firm says.
The solution also ensures the privacy of collateral transactions, limiting the access of confidential terms and on-chain movements to the relevant counterparties.
Simranjeet Singh, head of DeFi trading at GSR, adds: 鈥淭he promise of crypto is true ownership of value, and seamless flexibility in its utilisation.
鈥淏y developing solutions for on-chain derivative margin optimisation on Canton, Digital Asset is bridging the liquidity gap between crypto-native players wanting access to institutional capital and traditional players venturing into the ever-expanding digital assets space. That capital efficiency unlock is here to stay.鈥�
Launched in January, the project will use the Canton Network鈥檚 privacy capabilities to create an on-chain collateral and margin management solution for bilateral derivatives.
The move aims to address inefficiencies and constraints in the crypto derivatives market, which the firm says stems from the lack of a comprehensive and accessible regulatory framework.
According to the Canton Network, the new additions join Flowdesk and QCP as design partners, providing expertise on application requirements.
The application will be open to all OTC bilateral derivatives traders upon its launch in the third quarter.
Georg Schneider, head of financial products at Digital Asset, says: 鈥淲e鈥檙e pleased to welcome these new partners to the Canton Network as we expand the scope and impact of our on-chain margining initiative.
鈥淭his will serve the demand for enhanced privacy and capital-efficient infrastructure, and prove out the use case for traditional financial derivatives markets.鈥�
The collaboration aims to deliver a solution with several key capabilities, including on-chain collateral agreements encoded as smart contracts.
According to the Canton Network, this will enable the automatic execution and enforcement of terms in line with International Swaps and Derivatives Association (ISDA) credit support annex (CSA) initial and variation margin compliance requirements.
Cactus Raazi, CEO Americas at B2C2, comments: 鈥淎t B2C2, we believe the widespread adoption of digital assets depends on infrastructure that matches traditional finance standards. Canton's on-chain collateral solution is a crucial advancement, boosting capital efficiency, automation, and privacy in bilateral derivatives.鈥�
Using the Canton Network, parties gain real-time access to data shared only among transaction participants 鈥� allowing for streamlined automated margin workflows, instant tokenised collateral pledging, and improved dispute resolution, the firm says.
The solution also ensures the privacy of collateral transactions, limiting the access of confidential terms and on-chain movements to the relevant counterparties.
Simranjeet Singh, head of DeFi trading at GSR, adds: 鈥淭he promise of crypto is true ownership of value, and seamless flexibility in its utilisation.
鈥淏y developing solutions for on-chain derivative margin optimisation on Canton, Digital Asset is bridging the liquidity gap between crypto-native players wanting access to institutional capital and traditional players venturing into the ever-expanding digital assets space. That capital efficiency unlock is here to stay.鈥�
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