Post trade body Euroclear and blockchain firm Digital Asset have launched the first phase of the tokenised collateral mobility initiative for the Canton Global Collateral Network (GCN).
Set up by Digital Asset with participation from financial institutions, infrastructure providers and technology firms, the Canton Network is a privacy-enabled interoperable blockchain network designed for institutional assets.
The first phase of the Euroclear initiative will aim to define how Euroclear’s decades of collateral management expertise could be applied to the digital and crypto markets using the Canton Network.
Specifically, the pair aim to bringing industry participants to develop a roadmap for how tokenised collateral mobility could enhance efficiency across global markets, and how crypto derivatives collateral and margin management services could meet the interest of 24/7 trading and settlement.
Kelly Mathieson, chief business development officer, Digital Asset, says: "The Global Collateral Network has the potential to revolutionise collateral management by enabling real-time, compliant, and interoperable asset mobility across both traditional finance and digital markets.
"This is a significant step toward unlocking the full potential of tokenisation across new crypto capital markets."
Last year, Euroclear, Digital Asset and the World Gold Council completed a gold tokenisation pilot.