Beyond the Pilot: Wiring Wall Street’s New Internet
For years, blockchain had promise in the finance industry, but lacked the liquidity and connectivity to scale.
Yuval Rooz, CEO and co-founder of Canton Network, believes that era is now ending.
In correspondence with the Investing News Network, he explained how Canton Network, Digital Asset’s privacy-enabled interoperable blockchain, has shifted the conversation from whether the technology could work for Wall Street to how fast it will scale now that pilots are turning live, with heavyweights like JPMorgan Chase (NYSE:JPM) and the London Stock Exchange Group (LSEG) advancing from tests to live native transactions.
The problem: Legacy friction
Traditional banking still depends on millions of costly, slow and error-prone messages as institutions attempt to reconcile fragmented records across systems.
Repurchase agreement (repo) trades highlight the problem. Moving cash and collateral typically requires multiple intermediaries, manual checks and settlement delays that can stretch for days.
Public blockchains such as Ethereum offer speed, but their full transparency creates a different obstacle, exposing sensitive transaction data that banks cannot legally or competitively disclose.
At the heart of the issue is a structural trade off. Banks need shared networks to scale efficiency, yet legacy infrastructure and open ledgers force a choice between operating in isolation or revealing too much information. The result has been a patchwork of private systems that protect data sovereignty, but sacrifice interoperability and efficiency.
Explaining how Canton’s technology removes that trade off, Rooz said:
“Banks built walled gardens because there was no way to share infrastructure without giving up control or privacy. What we’re seeing now is a gradual shift away from isolated systems toward shared rails where institutions retain sovereignty over their data, while still achieving interoperability.
“That doesn’t mean internal systems disappear overnight, but it does mean the center of gravity shifts toward networks where counterparties can transact in real time.”
Canton’s solution: Privacy-enabled synchronization
Canton has created a shared ledger where institutions maintain private blockchains, yet synchronize seamlessly.
“I think critics misunderstand what financial institutions actually need,” Rooz explained. “Banks don’t want a system where everything is hidden, and they don’t want one where everything is public. They need a way to work together on shared processes, while keeping sensitive details private. That’s what Canton was designed for.”
In practice, JPMorgan keeps its ledger sovereign, while plugging into LSEG for atomic delivery-versus-payment (DvP) settlements, all without revealing private data. Sub-transaction privacy ensures only trade participants see details; to others, it’s invisible….
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