Digital Asset Secures $135 Million to Boost Institutional Blockchain Adoption

Digital Asset, a prominent provider of institutional blockchain infrastructure, has secured $135 million in a strategic funding round. The round was spearheaded by DRW Venture Capital and Tradeweb Markets, with notable contributions from major financial institutions such as Goldman Sachs, Citadel Securities, BNP Paribas, and the Depository Trust & Clearing Corporation. Additionally, crypto-focused investors like Paxos, Polychain Capital, and Circle Ventures participated in the funding.

The newly raised capital is intended to accelerate the adoption of institutional and decentralized finance on the Canton Network, a permissionless layer-1 blockchain. This blockchain is recognized for its configurable privacy and institutional-grade compliance. Digital Asset plans to use this funding to expand the integration of real-world assets (RWAs) into the network, potentially revolutionizing the management and trading of these assets.

The Canton Network has already demonstrated significant progress in institutional adoption. In May 2023, Digital Asset, in collaboration with firms such as Microsoft, Goldman Sachs, and Deloitte, announced the Canton Network. By September 2024, Digital Asset and the Depository Trust & Clearing Corporation completed a pilot project on the Canton Network, focusing on US Treasury Collateral. In early October 2024, another large pilot project was completed with Euroclear, the World Gold Council, and Clifford Chance, involving the tokenization of gold and bonds on the Canton Network.

Ask Aime: What's the impact of Digital Asset's $135 million funding round on institutional and decentralized finance adoption?

As of mid-March 2024, the Canton Network had facilitated over 350 simulated transactions via distributed ledger technology, covering areas such as tokenized assets, fund registry, digital cash, repo, securities lending, and margin management. These tests involved a diverse group of participants, including 15 asset managers, 13 banks, four custodians, three exchanges, and Paxos. Yuval Rooz, co-founder and CEO of Digital Asset, emphasized the network's versatility, stating that Canton is already supporting numerous asset classes and that this funding will accelerate the onboarding of even more real-world assets, bringing blockchain's transformative potential to an institutional scale.

The surge in real-world assets (RWAs) in the first half of 2025, driven by increasing regulatory clarity, has positioned the RWA market as a hotspot for development. The total RWA market valuation surpassed $23 billion, reflecting a 260% increase during this period. This growth has attracted various players, including Alchemy Pay, which expanded into RWAs through a partnership with Backed, and Guggenheim, which enhanced its digital commercial paper offering through a collaboration with Ripple. These developments underscore the growing interest and investment in the RWA industry, further validating the potential of blockchain technology in transforming traditional financial systems.