Canton Network Drives Real-Time Collateral Transformation as DTCC Partnership Targets 2026 Launch

TLDR:

• Financial firms hold $25 billion in excess or unremunerative collateral due to settlement delays.
• Canton Network completed live weekend trades using tokenized US Treasuries for cross-collateral repo transactions.
• The DTCC partnership will tokenize DTC-custodied US Treasuries on the Canton Network in the first half of 2026.
• Tier 1 institutions could generate $346 million annually through improved collateral mobility via tokenization.

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Financial institutions face mounting pressure from inefficient collateral management systems that lock up billions in underutilized assets. 

Canton Network has demonstrated practical solutions through live weekend trading using tokenized real-world assets, addressing critical pain points in settlement delays and operational costs. 

The platform’s partnership with DTCC to tokenize U.S. Treasuries in early 2026 marks a pivotal shift from theoretical benefits to market-ready infrastructure for institutional digital asset adoption.

Quantifying the Cost of Inefficient Collateral Systems

Financial firms manage approximately $74 billion in collateral on average, yet current systems create substantial opportunity costs. 

A ValueExchange report reveals that 25 percent of collateral, roughly $25 billion per firm, remains either excess or unremunerative overnight. 

These inefficiencies stem from settlement delays, manual processing requirements, and a lack of delivery certainty that prevent optimal asset utilization.

Operating costs compound these challenges, consuming up to 57 percent of trade value, while 70 percent of firms struggle with collateral delivery. 

Canton Network shared on their platform that settlement delays and operating costs erode returns, creating billions in opportunity costs for institutions. 

Additionally, 35 percent of firms post more than half their collateral overnight, further reducing potential earnings from these assets.

The industry recognizes tokenization as the primary solution, with 94 percent of survey respondents anticipating improved collateral mobility and 92 percent expecting reduced operating costs. 

Tier 1 financial institutions could gain up to $346 million annually in interest earnings through tokenized collateral systems. 

Instant delivery-versus-payment settlement, cited by 81 percent as critical, enables real-time lending and facilitates intraday financing while reducing overnight postings and excess buffer requirements.

Live Trading Proves Tokenization Viability on Canton Network

Canton Network has moved beyond theoretical discussions by completing two sets of weekend trades using on-chain real-world assets. 

These transactions demonstrated the platform’s capability to bring U.S. Treasuries on-chain for back-to-back repurchase agreements against multiple stablecoins. 

Market participants executed fully on-chain processes from asset creation through redemption while settling dynamically to mobilize collateral during after-hours periods.

The successful trades proved real-time collateral reuse across counterparties, addressing key operational bottlenecks identified in industry surveys. 

Canton Network confirmed its expansion plans to include cross-border transactions, additional high-quality liquid assets, diverse digital money sources, and broader asset classes. 

These developments tackle the specific pain points that survey participants highlighted regarding current collateral management practices.

The DTCC partnership represents concrete progress toward mainstream adoption of tokenized collateral infrastructure. Digital Asset and DTCC will tokenize DTC-custodied U.S. Treasuries on Canton Network during the first half of 2026. 

This collaboration brings institutional-grade custody standards to blockchain-based settlement systems. Repurchase agreements remain the highest priority use case, with high-quality liquid assets and tokenized money market funds identified as core tokenization targets alongside stablecoins for digital money functionality.

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