Canton Network Launches 24/7 Global Collateral Mobility for Institutional Finance

Canton Network Marks Major Institutional DeFi Milestone

The Canton Network Group has officially launched its 24/7 Global Collateral Mobility framework, signaling a major leap forward for institutional decentralized finance and blockchain-based capital markets. This launch follows the successful completion of a third live series of cross-border transactions, moving the platform beyond pilot testing into real-world, production-level financial activity.

Unlike traditional blockchain networks, Canton is purpose-built for regulated institutions. It allows banks, asset managers, custodians, and market infrastructure providers to transact securely while meeting strict regulatory, privacy, and compliance requirements. The latest milestone confirms that blockchain is no longer an experimental layer for institutions  it is becoming core financial infrastructure.

How Tokenized Deposits Are Powering Real-Time Finance

A critical component of this launch is the use of tokenized deposits through the LSEG Digital Settlement House (LSEG DiSH). Tokenized deposits are digital representations of commercial bank money, fully backed 1:1 by fiat currency and operating within regulated frameworks.

In the latest transactions, these tokenized deposits were used to support intraday repo activity, enabling institutions to borrow and lend against collateral in real time. Traditionally, repo markets operate within fixed settlement windows, often limited by geography and banking hours. With Canton’s infrastructure, collateral can now be mobilized 24 hours a day, seven days a week, dramatically reducing idle capital.

Industry data shows that global repo markets exceed $12 trillion in daily volume, yet a significant portion of collateral remains trapped due to settlement frictions. Canton’s model directly targets this inefficiency.

Cross-Border Transactions at Production Scale

The third completed transaction series demonstrated seamless cross-border collateral movement across multiple jurisdictions. Unlike earlier pilots, these transactions were not limited to small test sizes. Participants executed real institutional trade sizes, validating the network’s scalability and resilience.

According to industry benchmarks, cross-border collateral transfers can take one to three business days under legacy systems. On Canton, settlement occurred intraday, reducing settlement risk and improving balance sheet efficiency. For large institutions, even a 1–2% improvement in collateral utilization can translate into hundreds of millions of dollars in freed capital annually.

Institutional Adoption Is Accelerating Fast

Canton Network adoption has accelerated sharply over the past year. More than 25 global financial institutions and market infrastructure providers are now actively participating in live use cases. Across earlier phases, over 500 on-chain transactions involving tokenized bonds, cash, and collateral assets were successfully completed.

From an analytics standpoint, this momentum is significant. Industry surveys indicate that over 70% of Tier-1 banks are actively exploring tokenization, but fewer than 15% have moved into live production. Canton’s latest launch places it firmly within that top adoption tier.

Why 24/7 Collateral Mobility Changes Market Dynamics

The ability to move collateral continuously reshapes liquidity management. During periods of market stress, institutions often face margin calls outside standard banking hours. With 24/7 collateral mobility, firms can respond immediately instead of waiting for markets to reopen.

Analysts estimate that delayed collateral posting contributes to billions in annual liquidity drag across global markets. Canton’s infrastructure directly addresses this by enabling:

• Faster margin coverage

• Reduced counterparty risk

• Improved intraday liquidity ratios

• Lower operational and funding costs

The Bigger Picture for Institutional DeFi

Canton’s launch represents more than a technical achievement  it reflects a structural shift in how institutional finance operates. By combining blockchain programmability with regulated financial rails, the network bridges the long-standing gap between traditional finance and decentralized infrastructure.

As tokenized deposits, bonds, and funds continue to scale, analysts expect the market for tokenized real-world assets to exceed $10 trillion by the early 2030s. Canton’s 24/7 Global Collateral Mobility positions it as a foundational layer for that growth.