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    3. The Genesis of Canton Network: Bringing Institutional Finance On-Chain at WebX2026

    The Genesis of Canton Network: Bringing Institutional Finance On-Chain at WebX2026

    By: rootdata|2026/08/04 06:30:20
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    The Birth of Canton: A Design Philosophy Born from the Swiss Federal System

    Mr. Koyanagi first questioned what had happened in the nine years from the founding of Digital Asset (2014) to the public launch of Canton’s open network (2023).
    Yuval Rooz
    From the very beginning, I was convinced that all assets around the world would be digitized and operated on the blockchain. At that time, Bitcoin was the only cryptocurrency, and Ethereum was just emerging. Bitcoin is unique and special, but there aren't many reasons to create countless imaginary assets from nothing. I believed that the biggest opportunity was whether we could realistically bring traditional finance on-chain.
    The acquisition of a Swiss smart contract development company in 2015 led to the birth of the concept of Canton. The team was Swiss, and the system of Canton also originated in Switzerland. Switzerland operates under a federal system of cantons, where many states function cooperatively. This is both the origin of the name and the very idea behind the architecture of the network.
    In 2016, we completed the white paper, and by 2020, the first version was finished. However, Mr. Rooz was not in a hurry to release it. "Once a protocol is made public, it becomes difficult to make significant changes," he reasoned, and continued to develop it privately with a small number of clients.
    Yuval Rooz
    Feedback from clients was extremely helpful in improving the protocol. The current version of Canton has gone through three architectural redesigns, with most of it based on client input. Finally, in 2023, we determined that we were ready to launch the open network, which aligns broadly with the vision outlined in the 2016 white paper.
    Balancing Privacy and Decentralization: The Real Needs of Institutional Investors

    "Privacy and decentralization are often discussed as opposing concepts, but how does Canton resolve this?" Mr. Koyanagi asked.
    Yuval Rooz
    They are not contradictory at all. Looking at the early discussion forums of Bitcoin, it was initially aimed at solving privacy issues. However, the first version failed to achieve this, and that bug became a feature, eventually symbolizing the movement. But that is not the reality. Those who have been kidnapped because it became known that they held Bitcoin in France must be wishing for privacy. Being decentralized does not contradict privacy.
    However, in reality, institutional investors do not publicly disclose their most important activities to the world. In many cases, this is a business requirement as well as a regulatory requirement. They cannot show customer information or transaction records to the entire world. We are a very pragmatic company. We meet clients where they need us. Privacy is essential in many cases.
    Editorial Note: Mr. Rooz positions Canton Network as the only public Layer 1 blockchain that implements privacy features for institutional investors. The design that balances privacy protection and transparency is one of the key differences from traditional cryptocurrency chains.
    Yuval Rooz
    Currently, there is no other network where institutional investors are actually running their businesses directly on-chain. In many cases, asset managers use blockchain as a distribution channel for tokenized assets, but the actual operations remain off-chain. On Canton, asset management, transactions, and service provision operate end-to-end on-chain.
    Permissioned Multi-Layer Design: Separation of Infrastructure and Applications

    When asked, "Is your chain permissioned, which makes privacy possible?" Mr. Rooz immediately denied it.
    Yuval Rooz
    No. There is a common analogy. The internet is a public network, but when you go to online banking, not everyone can just open an account. The infrastructure of Canton is accessible to anyone. However, that does not mean that all services on that infrastructure are open to everyone.
    The world of cryptocurrencies divides everything into too many binary choices. It tries to judge things as black or white. The reality is not that simple. Canton can have permissionless assets coexisting alongside permissioned assets. It is up to the application designers to decide. The infrastructure is open, and the applications above it have their own individual rules, creating a multi-layered structure.
    Editorial Note: According to Mr. Rooz's explanation, the Canton network itself is public (accessible to anyone), but the applications running on it can implement both permissioned and permissionless types. This design ensures regulatory compliance, similar to how banks require identity verification for customer onboarding.
    Yuval Rooz
    Even permissionless can be seen as a kind of permission. On Canton, it is possible to permit something to be permissionless. We do not impose our views. We leave the design choices to application developers.
    DTCC and Japanese Government Bonds: Proof of Real Business in Motion

    When the conversation turned to the partnership with DTCC, Mr. Rooz could not hide his excitement.
    Yuval Rooz
    First of all, the first live transaction will take place tomorrow. DTCC is the world's largest custodian, holding assets worth $100 trillion. Two of the most important asset classes in the world, U.S. equities and U.S. government bonds, will go on-chain tomorrow. Currently, over 50 companies are developing services utilizing these assets, and almost all major capital market participants will be involved in some way.
    Editorial Note: DTCC is a central institution responsible for the settlement, clearing, and custody of U.S. securities. The annual settlement amount is said to be in the quadrillions of dollars. The collaboration with the world's largest securities custodian marks a milestone indicating that the Canton Network has entered the practical stage as an institutional financial infrastructure. Furthermore, regarding Japanese government bonds, it was announced as a PoC (proof of concept) for digital collateral management in collaboration with Mizuho, Nomura, and JSCC, with a gradual transition to full operation expected.
    He also touched on the relationship with Japan. Following the investment by SBI Holdings, he revealed that a PoC for digital collateral management utilizing Japanese government bonds had been announced.
    Yuval Rooz
    We announced the tokenization of Japanese government bonds in collaboration with JSCC (Japan Securities Clearing Corporation), the Financial Services Agency, Mizuho Financial Group, and Nomura Holdings. Japanese government bonds are the second most important collateral in the world. If U.S. Treasuries and Japanese government bonds exist on the same protocol, it opens up significant possibilities for one of the most important trades in the world, the dollar-yen carry trade. Today, most of the top 20 banks in the world are already participating in the Canton network.
    Session Summary

    When asked about competition with Ripple, Ethereum, and Solana, Mr. Rooz responded,
    "I come from an engineering background. I believe that in the end, physics will win. If you do not provide actual business and do not process real activities, gravity will pull you down to the ground. I have no intention of competing with Ripple, Ethereum, or Solana. I am focused on organizations that actually run businesses and pay fees."
    Currently, Canton processes nearly $400 billion to $500 billion daily, earning fees that surpass Ethereum and Solana each day. Still, Mr. Rooz stated, "This is just the first inning of the journey." By bringing the activities of institutional investors on-chain, investment opportunities in next-generation financial infrastructure are opened up to individual investors. Digital Asset is building a track record toward that realization.

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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    Contents

    The Birth of Canton: A Design Philosophy Born from the Swiss Federal System
    Mr. Koyanagi first questioned what had happened in the nine years from the founding of Digital Asset (2014) to the public launch of Canton’s open network (2023). Yuval Rooz From the very beginning, I was convinced that all assets around the world would be digitized and operated on the blockchain. At that time, Bitcoin was the only cryptocurrency, and Ethereum was just emerging. Bitcoin is unique and special, but there aren't many reasons to create countless imaginary assets from nothing. I believed that the biggest opportunity was whether we could realistically bring traditional finance on-chain. The acquisition of a Swiss smart contract development company in 2015 led to the birth of the concept of Canton. The team was Swiss, and the system of Canton also originated in Switzerland. Switzerland operates under a federal system of cantons, where many states function cooperatively. This is both the origin of the name and the very idea behind the architecture of the network. In 2016, we completed the white paper, and by 2020, the first version was finished. However, Mr. Rooz was not in a hurry to release it. "Once a protocol is made public, it becomes difficult to make significant changes," he reasoned, and continued to develop it privately with a small number of clients. Yuval Rooz Feedback from clients was extremely helpful in improving the protocol. The current version of Canton has gone through three architectural redesigns, with most of it based on client input. Finally, in 2023, we determined that we were ready to launch the open network, which aligns broadly with the vision outlined in the 2016 white paper. Balancing Privacy and Decentralization: The Real Needs of Institutional Investors
    "Privacy and decentralization are often discussed as opposing concepts, but how does Canton resolve this?" Mr. Koyanagi asked. Yuval Rooz They are not contradictory at all. Looking at the early discussion forums of Bitcoin, it was initially aimed at solving privacy issues. However, the first version failed to achieve this, and that bug became a feature, eventually symbolizing the movement. But that is not the reality. Those who have been kidnapped because it became known that they held Bitcoin in France must be wishing for privacy. Being decentralized does not contradict privacy. However, in reality, institutional investors do not publicly disclose their most important activities to the world. In many cases, this is a business requirement as well as a regulatory requirement. They cannot show customer information or transaction records to the entire world. We are a very pragmatic company. We meet clients where they need us. Privacy is essential in many cases. Editorial Note: Mr. Rooz positions Canton Network as the only public Layer 1 blockchain that implements privacy features for institutional investors. The design that balances privacy protection and transparency is one of the key differences from traditional cryptocurrency chains. Yuval Rooz Currently, there is no other network where institutional investors are actually running their businesses directly on-chain. In many cases, asset managers use blockchain as a distribution channel for tokenized assets, but the actual operations remain off-chain. On Canton, asset management, transactions, and service provision operate end-to-end on-chain. Permissioned Multi-Layer Design: Separation of Infrastructure and Applications
    When asked, "Is your chain permissioned, which makes privacy possible?" Mr. Rooz immediately denied it. Yuval Rooz No. There is a common analogy. The internet is a public network, but when you go to online banking, not everyone can just open an account. The infrastructure of Canton is accessible to anyone. However, that does not mean that all services on that infrastructure are open to everyone. The world of cryptocurrencies divides everything into too many binary choices. It tries to judge things as black or white. The reality is not that simple. Canton can have permissionless assets coexisting alongside permissioned assets. It is up to the application designers to decide. The infrastructure is open, and the applications above it have their own individual rules, creating a multi-layered structure. Editorial Note: According to Mr. Rooz's explanation, the Canton network itself is public (accessible to anyone), but the applications running on it can implement both permissioned and permissionless types. This design ensures regulatory compliance, similar to how banks require identity verification for customer onboarding. Yuval Rooz Even permissionless can be seen as a kind of permission. On Canton, it is possible to permit something to be permissionless. We do not impose our views. We leave the design choices to application developers. DTCC and Japanese Government Bonds: Proof of Real Business in Motion
    When the conversation turned to the partnership with DTCC, Mr. Rooz could not hide his excitement. Yuval Rooz First of all, the first live transaction will take place tomorrow. DTCC is the world's largest custodian, holding assets worth $100 trillion. Two of the most important asset classes in the world, U.S. equities and U.S. government bonds, will go on-chain tomorrow. Currently, over 50 companies are developing services utilizing these assets, and almost all major capital market participants will be involved in some way. Editorial Note: DTCC is a central institution responsible for the settlement, clearing, and custody of U.S. securities. The annual settlement amount is said to be in the quadrillions of dollars. The collaboration with the world's largest securities custodian marks a milestone indicating that the Canton Network has entered the practical stage as an institutional financial infrastructure. Furthermore, regarding Japanese government bonds, it was announced as a PoC (proof of concept) for digital collateral management in collaboration with Mizuho, Nomura, and JSCC, with a gradual transition to full operation expected. He also touched on the relationship with Japan. Following the investment by SBI Holdings, he revealed that a PoC for digital collateral management utilizing Japanese government bonds had been announced. Yuval Rooz We announced the tokenization of Japanese government bonds in collaboration with JSCC (Japan Securities Clearing Corporation), the Financial Services Agency, Mizuho Financial Group, and Nomura Holdings. Japanese government bonds are the second most important collateral in the world. If U.S. Treasuries and Japanese government bonds exist on the same protocol, it opens up significant possibilities for one of the most important trades in the world, the dollar-yen carry trade. Today, most of the top 20 banks in the world are already participating in the Canton network. Session Summary

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