Goldman Sachs, BNY Mellon test blockchain network with other firms: Bloomberg

Nearly a year after launching, the blockchain network that brought together top banks like Goldman Sachs and BNY Mellon is finally being tested, according to Bloomberg.

Goldman Sachs, BNY Mellon, Cboe Global Markets and several other firms have completed a series of tests on Canton Network, an interoperable "network designed for institutional assets" created by the firm Digital Asset Holdings.  The new network first launched last May and was meant to begin testing in July 2023. Microsoft and Deloitte were said to be participating at the time of launch.

According to Bloomberg, this recent test is one of the most extensive experiments of its kind. Simulated assets were used during the test, also according to the report.

"Participants executed more than 350 simulated transactions on blockchain for tokenized assets, fund registry, digital cash, repo, securities lending and margin management," the report said. "The goal is to explore potential benefits, including reducing counterparty and settlement risks and optimizing capital."

TradFi's growing interest in blockchain

The report suggested that the test demonstrates "growing momentum" among traditional financial institutions to use cases for blockchain technology "after a decade" of experimentation.

Traditional financial firms like BlackRock and Fidelity launching spot bitcoin ETFs in January have also been viewed by many as legitimizing not just blockchain, but cryptocurrencies. The new financial instruments have cumulatively generated more than $100 billion in trading volume.

When Canton Launched last year, a host of other firms were also mentioned including BNP Paribas, Broadridge, Cumberland, Deutsche Börse Group, DRW, Liberty City Ventures, Paxos, Right Pedal LendOS, S&P Global, SBI Digital Asset Holdings, Umbrage, Versana, VERT Capital, Xpansiv, and Zinnia.