Author: YettaS Source: X, @YettaSing

Canton is probably one of the most noteworthy and overlooked players in the entire RWA circuit.

Recently, the market has discussed the listing of US stocks on the chain, and most of the attention has been focused on the issuance side. Who is issuing stablecoins, who is putting U.S. bonds on the chain, and what stocks are listed on CEX. But if we look back at the evolution of tradfi over the past few decades, what really determines the efficiency of capital flow and capital utilization is the settlement system, clearing system and collateral network.

Canton is backed by a number of traditional financial institutions such as JPMorgan, Goldman Sachs, DTCC, Euroclear, and Visa. Through cooperation with them, Canton wants to take over the core pillars of the traditional financial system.

Repo was the first to be moved to the chain.

Repo is the most important infrastructure in the entire financial market. Banks, securities firms, and hedge funds rely on Repo to obtain short-term financing every day, and a large amount of liquidity is allocated through the Repo market. In a sense, the reason why U.S. debt has become the core asset of the global financial system is not just because it is safe in itself, but because it can be efficiently used as collateral in the Repo market.

Currently, Broadridge’s distributed ledger Repo platform is already running on the Canton network. The average daily transaction size has reached approximately US$362 billion, and the monthly transaction volume has reached US$7.2 trillion.

Moreover, Canton is gradually completing the closed loop of Repo business.

A Repo transaction essentially consists of two parts: collateral on one side and cash on the other. Collateral has started flowing on Canton over the past few years, and the cash side is starting to move into the same system as JPMorgan natively issues its own USD deposit token, JPMD, to the Canton network. When collateral and cash exist on the same network at the same time, it means that Repo has the opportunity to achieve true atomic settlement and round-the-clock real-time delivery.

For a market that has long been restricted by trading hours and settlement cycles, this change is not a simple efficiency improvement, but a redefinition of the flow between funds and collateral.

In addition to Repo, what is more noteworthy is that US Treasury bonds and US stocks themselves are also entering Canton.

Many Crypto investors regard U.S. debt as an income-generating asset, but for the traditional financial system, the more important identity of U.S. debt is actually the core collateral in the world. A large number of financing transactions, derivatives positions and liquidation activities are ultimately based on U.S. debt. Therefore, the significance of U.S. debt on-chain has never been just to add another RWA, but that the most important collateral of the entire financial system has begun to enter the on-chain environment.

At the end of 2025, DTCC and Digital Asset announced a cooperation to introduce U.S. Treasury bonds managed by DTC into the Canton network, and plan to gradually expand to more DTC and Federal Reserve-recognized assets in 2026. Considering the position of DTCC itself, this is the most core infrastructure institution in the U.S. securities market as it begins to explore how to incorporate existing assets into the new settlement and collateral system.

DTCC recently served as Co-Chairman of the Canton Foundation with Euroclear. In other words, those involved in formulating the rules of the network are the world's most important clearing institutions and central securities depositories themselves. Canton is truly gradually becoming part of the future financial infrastructure.

While the market is still discussing who can issue more on-chain assets and whether CEX can get a share, Canton is taking over the core components of the traditional financial system such as Repo, US Treasury bonds and bank deposits.

The financing infrastructure, core collateral, and currency itself are being gradually moved into the same network. The on-chain economy will definitely come true, but it may not be in the way we thought.