Nasdaq Partners QCP to Integrate Canton Network for Enhanced Capital Efficiency

Nasdaq and QCP have announced a significant collaboration to integrate the Canton Network into the Nasdaq Calypso platform, marking a new era in financial technology innovation. This partnership aims to streamline collateral management across both traditional and digital assets, potentially enhancing capital efficiency for a diverse range of market participants. The Canton Network, provided by Digital Asset, is designed to enhance operational efficiencies for various asset classes, including crypto derivatives, fixed income, exchange-traded derivatives, and over-the-counter derivatives.

This integration merges traditional financial technology with blockchain capabilities, promising new workflow solutions that involve automated risk management and seamless operations across crypto and traditional derivatives. QCP's expertise in this area is expected to play a pivotal role in shaping the product design and market integration. Melvin Deng, CEO of QCP, emphasized the focus on enhanced security and 24/7 capital deployment, stating that automating collateral management on-chain allows for better pricing and the ability to deploy capital across both traditional and digital assets. QCP will support Nasdaq in developing a new suite of OTC spot and derivatives products, setting a new standard for institutional digital assets.

The industry views this collaboration as a pivotal shift towards modernization, underscoring growing institutional interest in blockchain technology. This integration could reshape asset management paradigms by merging blockchain efficiencies with established financial systems. Analysts highlight potential cost reductions and operational continuity for global banks using the Calypso platform. The partnership seeks to mature and scale the next generation of digital asset infrastructure, enabling financial institutions to allocate capital more efficiently by mobilizing and redeploying previously locked-up collateral across markets.

This move by Nasdaq is seen as setting new benchmarks in financial technology. Historical data suggests enhanced performance for integrated systems, aligning with strategic goals for capital markets modernization. The collaboration with QCP, Primrose Capital Management, and Digital Asset marks a significant step forward in the integration of blockchain technology into institutional finance. This partnership paves the way for more efficient and secure capital management in the digital asset ecosystem, positioning Nasdaq as a leader in driving institutional adoption of digital assets.

Yuval Rooz, Co-Founder & CEO of Digital Asset, emphasized that this milestone shows how Canton can meaningfully enhance institutional workflows. By automating margin and collateral processes on-chain, firms gain real-time efficiency and control while maintaining data confidentiality through configurable privacy settings. This step is crucial in harmonizing traditional and digital markets on a trusted, interoperable infrastructure. Linus Ong, Chief Investment Officer of Primrose Capital Management, noted that this integration empowers funds to align portfolio management and real-time risk management with institutional-grade on-chain infrastructure, enhancing trust in the infrastructure and networks that underpin the digital asset ecosystem.

Magnus Haglind, Head of Marketplace Technology at Nasdaq, stated that capital market infrastructure and the emerging digital asset ecosystem are on the cusp of a generational shift. This convergence with faster settlement and 24-hour trading is driving a new operational paradigm for market participants. Financial institutions need to improve real-time risk management and mobilize collateral to optimize capital and liquidity deployment. Nasdaq is committed to supporting the evolution of the digital asset ecosystem by helping to drive resilience and integrity across the market. Through this suite of digital asset products and services, Nasdaq aims to advance its existing digital asset capabilities across its suite of capital market solutions, helping to drive institutional adoption of digital assets.