Canton SPAC Aims to Bridge TradFi and Institutional-Grade Crypto

Canton Network's backers are advancing plans to raise $500 million for a special purpose acquisition vehicle (SPAC) that will invest in Canton Coin (CC), the native token of the privacy-focused blockchain. The initiative, led by trading firm DRW Holdings and Liberty City Ventures, aims to create a listed entity that will hold and manage Canton tokens, positioning it as the latest entrant in the digital-asset treasury (DAT) space, according to a Bloomberg report. The vehicle will combine contributions of Canton Coins from DRW and Liberty City with external capital, with the latter expected to provide between $100 million and $200 million, the report said.

The SPAC structure mirrors the model pioneered by companies like MicroStrategy, where investors gain exposure to cryptocurrencies through traditional stock listings. If successful, the Canton-focused vehicle would join a growing roster of DATs, which have amassed billions of dollars in assets as institutional demand for crypto infrastructure grows, the Bloomberg report noted. The Canton Network, developed by Digital Asset Holdings, is designed for institutional-grade privacy and has attracted major financial players, including Goldman Sachs, Citadel Securities, and BNP Paribas, as validators and ecosystem participants, according to a Cointelegraph report.

BitGo, a leading digital asset custodian, has recently expanded its services to support Canton Coin, offering institutional clients regulated cold-storage custody and $250 million in insurance coverage for large holdings, according to a Yahoo Finance article. The integration, announced on October 29, marks BitGo as the first U.S.-qualified custodian for CC and includes tools for streamlined reporting and multi-signature security, according to a crypto.news article. Chen Fang, BitGo's Chief Revenue Officer, emphasized the move's role in enabling institutional adoption of Canton's infrastructure, which supports tokenized real-world assets (RWAs) and stablecoin settlements, the Yahoo Finance article said.

Canton Coin, launched in July 2024, is currently earned by network participants providing infrastructure or applications rather than traded on traditional exchanges, according to the Yahoo Finance article. Over 22 billion CC tokens are in circulation, with more than 300 participants using the token. The protocol's Daml smart contract language enables programmable privacy and horizontal scaling, making it attractive to regulated financial institutions. Melvis Langyintuo, Executive Director of the Canton Foundation, described BitGo's support as a "significant step toward institutional adoption of CC" and highlighted the potential for future capabilities, including stablecoin and token standard integration, the crypto.news article said.

The SPAC initiative also aims to enhance the Canton ecosystem by acting as a super validator—generating coins—and developing applications linked to the blockchain, the Bloomberg report added. DRW and Liberty City's involvement underscores the growing institutional interest in Canton, which has seen parabolic growth since its 2023 launch. The network's privacy-first architecture, designed for interoperability between digital assets and traditional finance, aligns with rising demand for compliant, scalable blockchain solutions, the Cointelegraph report noted.

With the Canton Foundation preparing for a European listing of CC on Kraken's EU platform and BitGo expanding its infrastructure, the SPAC could accelerate the token's public market debut. The move reflects broader trends in crypto adoption, where institutional-grade security and regulatory clarity are driving innovation in tokenized assets and decentralized finance.