Digital Asset, the development firm behind the Canton Network (CC) blockchain used by major banks and trading firms, said Thursday it closed a $355 million fundraising round to support its efforts to bring capital markets onchain.
The investment was led by a16z, with participation from global institutions including ABN Amro, Apollo Funds, BNP Paribas, Citadel Securities, HSBC, SBI Group and Abu Dhabi Investment Authority through a subsidiary.
The amount raised beat the $300 million target for a $2 billion valuation reported last month.
The investment comes as traditional financial firms are increasingly backing blockchain infrastructure built specifically for regulated markets. Tempo, the payments chain developed by Stripe and Paradigm, reportedly raised $500 million last year at a $5 billion valuation. Circle Internet (CRCL), the stablecoin issuer behind USDC, raised $222 million for its Arc blockchain at a $3 billion valuation with backing from BlackRock, Apollo Funds, a16z crypto and ARK Invest.
The Canton Network was designed for large financial institutions to issue and trade real-world tokenized assets, such as bonds, loans and funds, on a shared ledger while maintaining privacy and regulatory compliance. It combines features of public blockchains, such as decentralization, with the safeguards required by traditional finance.
“For capital markets to move on-chain, institutions need infrastructure that reflects how they actually operate – with privacy, compliance, scale and interoperability built in from the start,” said Digital Asset co-founder and CEO Yuval Rooz.
The firm said that a16z crypto will also provide expertise in development, policy and research in addition to the financial backing.
“One of the most compelling blockchain opportunities is no longer theoretical; it is emerging as real assets and institutional workflows move on-chain,” Ali Yahya, general partner at a16z crypto, said in a statement. “Digital Asset has built one of the clearest examples of blockchain product market fit for regulated finance.”
Read more: Why big banks are rejecting open ledgers to build their own private blockchains
