Canton Network Gains Steam as Banks Build Blockchain Bridge to Traditional Finance

The addition of HSBC and BNP Paribas to the Canton Foundation marks a significant step in the institutional adoption of blockchain for real-world asset tokenization. The Canton Foundation, the governance body of the Canton Network, now counts 30 members following the recent inclusion of the two global systemically important banks (G-SIBs), joining earlier additions such as Goldman Sachs, Moody’s, and the Hong Kong FMI Services. Both HSBC and BNP Paribas have integrated Canton technology into their enterprise blockchain systems, though these remain somewhat isolated. The Canton Network, designed as a public, permissioned blockchain, offers enhanced interoperability, enabling digital assets from these private networks to be traded, used as collateral, or settled using Canton-based digital money, all while maintaining privacy.

The Canton Network is being positioned as a critical infrastructure for tokenized finance, with a primary focus on real-world assets, regulatory compliance, and cross-chain interoperability. The network currently supports over $3.6 trillion in tokenized assets and functions through a "Global Synchronizer" that allows for seamless trade and settlement across different blockchain platforms without compromising data privacy. This infrastructure is intended to mirror the trust and operational standards of traditional capital markets, fostering a neutral, collaborative environment for banks, fintech firms, and service providers.

BNP Paribas and HSBC have both expressed strategic motivations for their participation. BNP Paribas’ head of global markets, Hubert de Lambilly, stated that joining the Canton Foundation aligns with the bank’s broader commitment to distributed ledger technology (DLT) to meet evolving client needs. The French bank has previously invested in Digital Asset, the firm behind Canton, including its $135 million funding round in 2024. HSBC, meanwhile, views the move as an opportunity to advance the maturation of the blockchain industry and improve liquidity in digital asset markets. HSBC has been active in blockchain-based bond issuance and custody solutions and is reportedly preparing to apply for a stablecoin license in Hong Kong.

The Canton Foundation’s membership now includes four G-SIBs, reflecting growing confidence among global financial institutions in the potential of blockchain to transform asset management, settlement, and liquidity infrastructure. Institutions are increasingly focusing on tokenized real-world assets as a key narrative for the 2025 financial cycle, diverging from earlier retail-driven crypto cycles. The World Economic Forum (WEF) has noted this shift, highlighting the collaboration between institutions, regulators, and technology firms in building trusted and interoperable frameworks for asset tokenization. Regulatory developments, such as the U.S. GENIUS Act and evolving Hong Kong stablecoin rules, have further reinforced institutional confidence in the sector.

Recent experiments in tokenized assets have extended beyond traditional fixed-income instruments to include equities, commodities, and energy infrastructure. As the regulatory and technological ecosystems mature, more traditional financial players are expected to follow suit. The inclusion of HSBC and BNP Paribas into the Canton Foundation not only underscores the growing legitimacy of asset tokenization but also signals a broader shift toward institutional-driven innovation in digital finance.