The media reports that Goldman Sachs and BNY Mellon are expanding the scope of their interaction with the functional space of blockchain transactions.
It is known that the mentioned financial institutions were among several organizations that participated in the testing of the blockchain network. The corresponding process was a series of actions to study the functional features of advanced technology within the framework of its use case for solving tasks related to commercial operations. The media also reported that the specified blockchain network connected various financial institutions, becoming one of the largest such projects in the capital markets.
According to journalists’ information published this week, the mentioned initiative was named Canton Network. This blockchain network was launched in 2023 by the startup Digital Asset Holdings.
Participants in the testing process have made more than 350 simulated transactions. These financial operations were based on the blockchain for tokenized assets, fund registry, digital cash, margin management, repo, and securities lending.
Eric Saraniecki, co-founder and head of strategic initiatives at Digital Asset, said in a media comment that the mentioned testing was just the first time that the startup managed to demonstrate many different types of apps connected together in coordinated synchronized transactions.
Besides Goldman Sachs and BNY Mellon, the stablecoin issuer Paxos Trust, Visa, Standard Chartered, and BNP Paribas also participated in the pilot project aimed at studying the specifics of blockchain transactions in the practical plane.
Yuval Rooz, CEO and co-founder of Digital Asset stated that what will be observed in blockchain networks, in most cases, will be related to bringing collaterals so that the user can move these collaterals around the clock in real-time.
Currently, what can be described as a change in the perception of the potential of advanced technologies by traditional banks and other financial institutions is being recorded. These organizations demonstrate an increase in activity in supporting initiatives to use blockchain in the real world. The mentioned technology has been tested for about ten years in the format of various experimental initiatives. Blockchain is also currently used in the financial sector, but the corresponding process is limited.
It is worth noting that nowadays proponents of blockchain’s underlying technical capabilities seek to separate it from the stable association with the sphere of cryptocurrencies. To achieve this goal, historical opportunity areas are being sought in the traditional segment of the financial sector that digital assets were originally designed to replace.
The innovative capability of the blockchain to store and move tokenized value in the digital native landscape can deservedly become an object of attention in terms of any utility that can be offered in this case. In the relevant context, it should also be noted that global commerce channels are increasingly being used online.
Regardless of what is happening in the sphere of cryptocurrencies, the architecture supporting virtual assets is steadily transforming into a kind of mainstream category and expanding its presence in the traditional financial space, gradually reducing the level of so-called technological conservatism in this environment.
Mastercard Chief Digital Officer Jorn Lambert said during a conversation with media representatives last year that the true intrinsic value of the blockchain has not yet been fully unlocked. Separately, he noted that the mentioned value lies in the programmability of transactions, the immutability of financial operations, and the ability to deliver. These features are competitive solutions against the background of the functionality of traditional types of payments.
As we have reported earlier, Bank Indonesia to Use Blockchain Technology for Digital Rupiah Trial.
