
Canton Network: DeFi for Institutions
Tokenized
Unlocking the Power of Collateral in Finance
Programmability and real-time movement of collateral present vast opportunities in finance, particularly through smart contracts that enable innovative business models and efficiency improvements over traditional finance (TradFi). Understanding the legal complexities surrounding collateral is crucial, particularly the concept of bankruptcy remoteness, which safeguards against risks highlighted during financial crises. The integration of collateral within existing regulatory frameworks poses significant challenges, as regulators seek assurance against potential market disruptions. The inefficiency of dormant collateral limits productivity in financial markets, creating constraints that modern solutions can alleviate. By enabling seamless movement of collateral across asset classes and jurisdictions, the potential for enhanced efficiency and global market participation becomes possible, transforming the financial landscape and potentially influencing everyday consumers.