The Canton Network announced that Flowdesk is joining as a key participant in the development of an on-chain collateral and margin management solution for bilateral derivatives.
Flowdesk joins Digital Asset, QCP, and a group of counterparties in building infrastructure “that leverages the Canton Network’s privacy-preserving capabilities.”
The initiative aims to address inefficiencies in the crypto derivatives market, including the challenges of “capital-intensive collateralization and the costs associated with traditional tri-party collateral management models.”
By integrating into the Canton Network, Flowdesk will contribute to the design and implementation of an “automated, cost-effective, and regulatory-aligned solution for on-chain margining.”
Georg Schneider, Head of Financial Products at Digital Asset said:
“Flowdesk brings deep expertise in digital asset market making and infrastructure, and their participation underscores the growing demand for more efficient, secure, and private financial workflows.”
The solution will enable key features such as smart contract-based collateral agreements that “comply with ISDA CSA Initial and Variation Margin frameworks, real-time access to a single source of truth via the Canton Network’s shared ledger, and automation of workflows including margin calls, collateral pledging, and dispute resolution—all while maintaining confidentiality between counterparties.”
With Flowdesk joining the initiative, The Canton Network further accelerates its vision of enabling “24/7 margining, reduced margin cycles, and integration of stablecoins and real-world assets (RWAs) across decentralized financial infrastructure.”
This collab marks another step toward building a privacy-enabled global collateral network that “connects trading venues, brokers, institutional investors, and FMIs—delivering the operational efficiency and trust demanded by today’s digital markets.”
The Canton Network is the financial industry’s public chain that can achieve on-chain privacy, control, and interoperability, “making it the most suitable network for institutional assets.”
The Network launched for testing with the “participation of a group of financial institutions, infrastructure providers, technology firms, and consultants in August 2023.”
Initially built upon Digital Asset’s technology, the Network’s controls, governance, and app development have “been open-sourced and decentralized to be managed by all participants, with the goal of fostering greater innovation and Network utility.”
The Canton Network’s design overcomes the shortfalls of blockchain networks by enabling siloed systems in finance to “become interoperable and synchronized in ways that had been impossible before.”
Offering the privacy and controls required for regulated organizations, the Canton Network creates a safe “environment in which assets, data, and cash can move freely across applications in real-time, unlocking new efficiencies and powering innovation.”