Yuval Rooz, co-founder of Canton Network, stated three technical advantages over Ethereum during an interview with NADA News on May 28. Rooz made the remarks following an April announcement that Mizuho Financial Group and Nomura Holdings adopted Canton Network as the infrastructure for a digital collateral management proof-of-concept using Japanese government bonds under Japan's Financial Services Agency Payment Infrastructure Project. Canton Network, developed by U.S.-based Digital Asset, enables financial institutions to maintain independent rules and ledgers while remaining interconnected, contrasting with single-chain public blockchains. The network already counts the Depository Trust & Clearing Corporation, JPMorgan, and Visa among its participants as traditional finance institutions accelerate blockchain integration.
Canton Network Claims Three Technical Advantages Over Ethereum
Rooz stated that no global traditional financial institution operates actual business on Ethereum because it does not meet institutional requirements. He identified three differentiating factors. First, advanced privacy: financial institutions face regulatory constraints preventing full transaction data disclosure, and Canton provides selective information disclosure structures. Second, asset control rights: on existing public blockchains or Layer 2 solutions like Arbitrum, asset freezing risks exist due to smart contract bugs or unknown third-party actions, whereas Canton allows asset issuers to retain 100% control. Third, neutral governance: Canton operates as open-source software not controlled by developer Digital Asset, with Canton Foundation chairmanship rotating among traditional finance entities including DTCC and Euroclear.
Mizuho and Nomura Adopt Canton for Japanese Government Bond Tokenization Project
Rooz described Japanese government bond tokenization as one of the most important use cases in global on-chain finance. He stated that JGBs represent the second-largest government bond market globally after U.S. Treasuries, with Japan's repo market daily transaction volume reaching approximately $1.5 trillion, the world's second-highest liquidity. The April announcement detailed a proof-of-concept for digital collateral management complying with Japan's Account Transfer Act and multi-tier account structures while enabling 24/7 cross-border transactions using Canton. Rooz stated the project aims not simply to digitize bonds but to enable real-time access and collateral-based asset procurement and settlement without intermediaries.
Digital Asset Engages Regulators on Technology Structure and System Risk
Rooz stated he maintains daily dialogue with the CFTC, Japan's Financial Services Agency, Bank of Japan, and central banks in Singapore, Hong Kong, the United Kingdom, and Europe. He identified regulators' primary concerns as technology uncertainty and systemic risk. Rooz stated the greatest danger involves authorities creating incorrect regulations without understanding subtle technological differences. He emphasized explaining how Canton guarantees privacy and control rights through technical architecture and how it integrates with existing financial systems.
DTCC Project Scheduled for October Launch on Canton Network
Rooz stated the maximum goal for the second half of 2026 involves bringing announced large-scale projects into actual operation. He specified that in October, a DTCC project will launch on Canton Network, describing it as a major turning point in global financial history. Rooz stated that Broadridge currently processes $340 billion to $400 billion in daily repo transactions on Canton, with fee revenue scaling beginning. He added that a major announcement is forthcoming.
Canton Network Positions as Financial Internet Connecting Independent Infrastructure
Rooz stated Canton aims to become the internet of finance. He stated that processing all global financial transactions on a single Layer 1 chain is physically impossible and that governments do not wish to relinquish control of domestic financial infrastructure to other countries. He referenced Russia's exclusion from SWIFT following the Ukraine war as demonstrating single-infrastructure dependency risk. The Canton name derives from Switzerland's 26 cantons, each maintaining different languages, laws, and tax rates while functioning as one federation. Rooz stated Canton's role involves becoming a connecting layer enabling safe asset interoperability while preserving independence, serving as a common language connecting global financial networks as the internet connected independent servers worldwide.
FAQ
What three advantages did Canton Network claim over Ethereum on May 28?
Yuval Rooz stated Canton provides advanced privacy through selective information disclosure, asset control rights allowing issuers to retain 100% control versus freezing risks on public blockchains, and neutral governance through Canton Foundation with rotating chairmanship among traditional finance entities including DTCC and Euroclear.
What did Mizuho Financial Group and Nomura Holdings announce in April regarding Canton Network?
In April, Mizuho Financial Group and Nomura Holdings announced adoption of Canton Network as infrastructure for a digital collateral management proof-of-concept using Japanese government bonds, conducted under Japan's Financial Services Agency Payment Infrastructure Project and complying with Japan's Account Transfer Act while enabling 24/7 cross-border transactions.
What project launch did Canton Network schedule for October?
Yuval Rooz stated a DTCC project will launch on Canton Network in October, describing it as a major turning point in global financial history, while noting Broadridge currently processes $340 billion to $400 billion in daily repo transactions on Canton.
