Euroclear and Digital Asset have launched the first phase of a project aimed at improving collateral mobility using blockchain technology. The initiative, part of the Canton Global Collateral Network (GCN), will assess how Euroclear’s collateral management expertise can be applied to digital and crypto markets.
The project comes in response to growing demand from financial institutions for more efficient collateral management across global markets, according to the announcement. With trading operating around the clock, particularly in crypto derivatives, firms are looking for solutions that allow assets to be moved and used more flexibly while still meeting regulatory requirements.
In this first phase, Euroclear and Digital Asset, in collaboration with a consultancy firm, will outline a strategic roadmap. This includes examining how tokenised collateral could improve efficiency and whether digital solutions can support real-time margin management in traditional and crypto markets.
The Canton Network
The Canton Global Collateral Network (GCN), designed to provide privacy, scalability, and interoperability for regulated financial markets, is at the centre of this initiative. Euroclear and Digital Asset see potential in leveraging blockchain technology to enable compliant and streamlined collateral exchange.
GCN, launched in May 2023, includes 30 initial participants such as BNP Paribas, Deutsche Börse Group, Goldman Sachs, and Clearstream. Clearstream has integrated its D7 digital securities platform with the GCN. This integration enables fully digital issuance and lifecycle processing of financial products, offering same-day issuance and automated straight-through processing across issuance, custody, settlement, and asset servicing.
Deutsche Bourse’s HQLAᵡ is not explicitly listed as a participant in the Canton Network. However, both HQLAᵡ and the GCN share a common goal of enhancing collateral mobility in financial markets through the use of distributed ledger technology (DLT).
