Investing.com--Digital Asset said on Thursday that a consortium of major market infrastructure and trading firms has completed a third set of transactions on the Canton Network, expanding on-chain intraday repo activity to multiple currencies, collateral types and cross-border flows.
The latest test adds to the industry's push to make collateral and cash, the two legs of secured financing, move on a shared blockchain stack in near real time. Kelly Mathieson, chief business development officer at Digital Asset, said the transactions build on earlier tests run by the group in July and October, expanding from stablecoin-based settlement toward tokenized deposits and broader cross-border, multi-currency activity.
Digital Asset said the transactions used tokenized commercial bank deposits provided via LSEG Digital Settlement House (LSEG DiSH) as the cash leg and tokenized collateral including European government bonds and U.S. Treasuries, settling in both euro and U.S. dollars.
Using tokenized commercial bank deposits rather than stablecoins creates a "real cash" option for on-chain repo settlement, the group said. It added that the round also brought European market infrastructures into the working group and extended testing beyond earlier single-currency runs.
But Digital Asset said the gating factor for wider rollout is still operational rather than technical. "The single biggest non-technical hurdle was the time for market participants to onboard to the new Canton apps," said Mathieson. She said onboarding still requires KYC and "the KYC processes still took the 'tradfi' amount of time," even when the technology and legal agreements were ready.
The working group included Cumberland DRW, Digital Asset, Societe Generale SA (EPA:SOGN), Tradeweb Markets Inc (NASDAQ:TW), and Virtu Financial Inc (NYSE:VIRT), with new members Euroclear, Euronext, LSEG and TreasurySpring joining the initiative.
LSEG said its DiSH cash service is designed to let users transfer commercial bank deposits to members of the DiSH network and tokenize that cash for 24/7 transferability. "We are excited about the potential for our LSEG DiSH cash service to provide a real cash solution as the cash leg of any digital asset transaction," said Bud Novin, head of payment systems, post trade solutions at LSEG. Novin said tokenizing DiSH cash on Canton allows customers to use an interoperable commercial bank money solution on-chain for settlement against other tokenized assets.
Euroclear said the project aligns with its work on digital finance and collateral mobility. "By combining our strong position at the heart of global collateral flows with our strategy to become a fully digital and data-enabled infrastructure, we aim to unlock new forms of liquidity and deliver real benefits for our clients," said Jorgen Ouaknine, global head of innovation and digital assets at Euroclear.
Euronext said the work reflects a broader industry effort to explore tokenization and on-chain infrastructure while remaining aligned with regulated market requirements. "For Euronext, this work is consistent with our strategy to support innovation that strengthens market efficiency, resilience and interoperability," said David Leblache, head of innovation and AI products at Euronext.
TreasurySpring said its partnership with Canton supports its treasury investment product offering and its work on digital assets across the treasury ecosystem.
Digital Asset said the working group plans to continue collaborating on additional on-chain financing initiatives through 2026, as part of the consortium's broader push toward a "scalable, always-on capital markets infrastructure."