Investing.com – As increasing regulatory pressure becomes increasingly evident in the United States, limiting the performance of well-known players in the sector, financial market giants are launching their own blockchain, the Canton Network. In a note sent to clients and the market on Wednesday, Julius Baer said that during the current U.S. banking crisis, major blockchains have demonstrated their strength and that partnerships like this “show the institutional appetite for blockchain technology.” The Swiss bank, however, reflects on the fact that this move “in no way indicates that monetary and regulatory policies will try to have the greatest influence on the asset class, at least in the short term.”
In an effort to increase transparency and efficiency in financial operations, 30 companies have formed a group of allies within the Cantonal Network, including Goldman Sachs (NYSE:), Deutsche Bank (ETR:), S&P Global, Moody’s and Microsoft (NASDAQ:). The group also wants to shorten the settlement times for securities transactions and reduce the time required to issue securities.
According to the network portal, Canton Network is “the first open blockchain network designed with the control and interoperability needed to power synchronized financial markets.”
Strict regulations
The past few weeks have been marked by a toughening of measures against several players linked to digital assets, with the intervention of institutions responsible for financial supervision on American soil. Companies like Binance and Cross River Bank have been affected. For the Federal Deposit Insurance Corporation (FDIC), Cross River Bank had to adopt strategies to correct weaknesses in its lending performance, with banking practices deemed “unsafe”. Binance, meanwhile, has been sued by the Commodity Futures Trading Commission (CFTC) for violating derivatives trading regulations.
“The cryptocurrency exchange had some promising plans, trying to bolster the crypto space in the United States, starting with buying some of the assets of Voyager Digital, a cryptocurrency lender that filed for bankruptcy in 2022. However, as regulations became stricter for Binance.US, it canceled the purchase of the mentioned assets a few weeks ago,” recalls Manuel Villegas, Digital Asset Analyst at Julius Baer.