Is 2025 the year we see the impact of meaningful convergence between crypto and on-chain capital markets? Circle’s acquisition of Hashnote and its move to bring USDC, the fastest-growing USD stablecoin, to Canton Network, alongside Hashnote’s USYC, the leading tokenized money market fund by AUM is just one example that suggests this will be the case1.
Connections like these bring 24/7 on-chain capital markets one step closer, unifying free-moving money with yield-bearing collateral on rails that deliver the privacy and control still so critical to institutions.
As capital markets and crypto firms create and connect we are pleased to provide this independent report by post-trade specialists Finadium. This detailed review of Canton Network and Ethereum offers an objective comparison of capabilities as they relate to the evolution of post-trade.
The Canton Network’s public blockchain ecosystem is open for business. But as you’ll see, not all public blockchains are created equal. As Finadium reports, Canton was launched to address the privacy and control issues seen in other public networks - Ethereum, for example, where “the level of privacy ... is not
currently suitable for regulated financial institutions” (page 23).
Full transparency in the post-trade context should continue to be seen as a bug, not a feature. Combine Canton’s proven privacy with its open infrastructure and governance, and the industry now has a network that can mobilize and connect tokenized assets across the traditional and crypto-capital markets value chain, blending the best features of both. Think 24/7 financing and collateral, with real-time liquidity supporting market depth and trading volume growth. Think access to broader pools of assets for use as collateral or financing, and utilization of a
greater proportion of the ~90% of eligible assets that are currently inaccessible2.
At this turning point for capital markets, I hope you find this Finadium report insightful. At Digital Asset, we are relentlessly working with leaders in the industry to incorporate and harness the best that crypto innovation has to offer, while keeping focus on the security, privacy and risk controls needed in regulated markets. The benefits are substantial: new products and services, expanded markets, risk and capital optimization, and the formation of deeper, more accessible liquidity pools.
24/7 capital markets are not waiting for you. So, what are you waiting for?
Kelly Mathieson
Chief Business Development Officer
Digital Asset
1 Circle Announces Acquisition of Hashnote and USYC Tokenized Money Market Fund Alongside Strategic Partnership with Global Trading Firm DRW, Jan 21, 2025
2 Currently only 10-11% of tradfi assets available are used as collateral, out of a $255T pool of marketable securities. 2024 SIFMA Capital Markets Factbook, data as of July 2024
by Kelly Mathieson
January 27, 2025
