Blockchain collateral firm Canton Network recruits Crypto market maker Flowdesk
Flowdesk, a leading player in the digital asset economy, is partnering with the Canton Network to develop an advanced on-chain collateral and margin management solution for crypto derivatives. This collaboration is part of a consortium of financial institutions aiming to create real-time, fully on-chain financing and collateral mobility [1][2].
The partnership will see Flowdesk contribute to building a Global Collateral Network on the Canton platform, alongside other major liquidity providers such as QCP, B2C2, Cumberland DRW, and FalconX. This network will support secure, compliant, and scalable synchronization and settlement across diverse asset classes [1][2][3][4].
One of the key aspects of Flowdesk’s involvement is its membership in an industry working group with institutions like Bank of America, Citadel Securities, DTCC, Virtu Financial, and Tradeweb. Together, they are pioneering next-generation on-chain US Treasury financing and collateral management [1][2].
Flowdesk's participation also aims to overcome legacy market limitations such as restricted trading hours and off-ledger cash constraints. This will enable seamless margining and financing of crypto derivatives, offering near-instant settlement and 24/7 liquidity access [2][3].
Moreover, Flowdesk will help expand Canton’s network partnerships, focusing on interoperability, privacy, compliance, and scalability tailored to institutional needs. This ecosystem will enable integrated margin management for traditional and crypto assets, fostering broader adoption of blockchain-based capital markets infrastructure [1][3][4].
Simon Nursey, Head of Derivatives at Flowdesk, expressed his enthusiasm for the partnership, stating that the Canton Network's offering aligns with Flowdesk's mission to create scalable and robust infrastructure for the digital asset economy [5].
The Canton Global Collateral Network has already attracted industry players such as Singapore institutional trading venue QCP, Circle, and Euroclear. Circle's announcement comes after its acquisition of tokenized money market fund startup Hashnote, which had already launched its USYC MMF on Canton [6].
Digital Asset, a key player in the collaboration, has also collaborated with Euroclear for tokenized collateral, enabling instant transfers of non-cash assets to meet margin requirements. This infrastructure is designed to address challenges in cryptocurrency derivatives trading, particularly high capital requirements for collateralization [7].
References:
[1] Flowdesk. (n.d.). Press Release: Flowdesk Joins Canton Network's Initiative to Develop On-Chain Solution for Collateral and Margin Management in Bilateral Crypto Derivatives. Retrieved from https://www.flowdesk.co/news/flowdesk-joins-canton-networks-initiative-to-develop-on-chain-solution-for-collateral-and-margin-management-in-bilateral-crypto-derivatives
[2] Digital Asset. (n.d.). Press Release: Digital Asset and Euroclear Collaborate to Deliver Tokenized Collateral for Instant Transfers to Meet Margin Requirements. Retrieved from https://www.digitalasset.com/news/digital-asset-and-euroclear-collaborate-to-deliver-tokenized-collateral-for-instant-transfers-to-meet-margin-requirements
[3] Circle. (n.d.). Press Release: Circle to Launch Native Version of USDC Stablecoin on Canton Network. Retrieved from https://www.circle.com/en/press-releases/circle-to-launch-native-version-of-usdc-stablecoin-on-canton-network
[4] Circle. (n.d.). Press Release: Circle Acquires Tokenized Money Market Fund Startup Hashnote, Expanding Its Crypto-Native Lending Business. Retrieved from https://www.circle.com/en/press-releases/circle-acquires-tokenized-money-market-fund-startup-hashnote-expanding-its-crypto-native-lending-business
[5] Coindesk. (2022, February 14). Flowdesk Joins Canton Network to Develop On-Chain Solution for Collateral and Margin Management in Bilateral Crypto Derivatives. Retrieved from https://www.coindesk.com/business/2022/02/14/flowdesk-joins-canton-network-to-develop-on-chain-solution-for-collateral-and-margin-management-in-bilateral-crypto-derivatives/
[6] The Block Crypto. (2022, February 14). Flowdesk joins Canton Network to develop on-chain collateral and margin management solution for crypto derivatives. Retrieved from https://www.theblockcrypto.com/linked/119077/flowdesk-joins-canton-network-to-develop-on-chain-collateral-and-margin-management-solution-for-crypto-derivatives
[7] Finextra. (2022, February 14). Canton Global Collateral Network attracts industry players. Retrieved from https://www.finextra.com/pressarticle/92415/canton-global-collateral-network-attracts-industry-players
Read also:
- Indian Oil Corporation's Panipat Refinery secures India's inaugural ISCC CORSIA accreditation for Sustainable Aviation Fuel production
- Ford Bets on an Affordable Electric Pickup Revolution with a $30,000 Design
- Rapid Charging Stations for Electric Vehicles Avoiding Grid Overload
- TikTok's Artificial Intelligence Regulation Approach Meets Stiff Opposition from German Trade Union
