Nasdaq has connected blockchain technology from the Canton Network to its Calypso platform, enabling automated margin and collateral management around the clock. The integration was developed through a partnership with QCP, Primrose Capital Management and Digital Asset.
The move addresses a key institutional use case for blockchain: collateral mobility. Traditional asset settlement often involves delays of a day or more, but the new system enables real time movement of capital and margin management across multiple asset classes including crypto derivatives, fixed income and over the counter derivatives.
Nasdaq Calypso is the company’s capital markets and treasury solution offering, with collateral management as one facet of the platform. The platform will now support automated workflows across both traditional and digital assets.
“Automating collateral management on-chain allows us to offer our clients enhanced security, better pricing, and the ability to deploy capital 24/7 across both traditional and digital assets,” said Melvin Deng, CEO of QCP.
Canton Network expands its collateral footprint
Digital Asset, which developed Canton, has been targeting collateral management use cases for some time. The company already has major clients using Canton technology for collateral, including Broadridge with its intraday repo solution DLR that processes $1.5 trillion in transactions monthly. Equilend, the largest securities lending platform, has also been developing 1Source using the technology.
When Digital Asset first unveiled the Canton Network, the initial pilots focused on tokenized collateral. Earlier this year, Euroclear announced tokenized collateral trials with Digital Asset. The blockchain firm faces competition in this space, with the DTCC also planning to launch a tokenized collateral network. However, that system will likely integrate with Canton, especially given the DTCC participated in Digital Asset’s recent $135 million funding round.
