Canton is transitioning from an RWA project to on-chain financial infrastructure.

Over the past few months, a series of actions around Canton have begun to emerge collectively. From the promotion of U.S. debt tokenization to the integration of institutional-level settlement assets, and the launch of credit rating nodes, these changes are not isolated events but are unfolding gradually within the same time window.

The reason these signals are worth discussing is that the direction they point to has already shifted. Early market attention on RWA focused more on “whether assets can be on-chain,” while recent focus has shifted to “whether the entire financial process can operate on-chain.” The focus has moved from single-point applications to systemic capabilities.

When assets, funds, and credit all enter the same network simultaneously, roles on the chain are no longer just record-keeping but begin to undertake real financial activities. Canton’s recent progress is precisely in this sense.

DTCC pushes U.S. debt onto the chain, Canton’s role changes

In early 2026, DTCC began promoting a pilot for tokenizing U.S. debt on Canton and planned to gradually launch related settlement processes. The significance of this move is not just a technical experiment but the level of participation by key entities.

DTCC has long been responsible for core clearing and custody functions in the global financial markets, handling assets worth trillions of dollars. When this institution begins to bring U.S. debt into the on-chain system, it signifies a migration of core traditional financial processes.

Against this backdrop, Canton’s positioning has changed accordingly. Originally a network mainly testing RWA, it now begins to have the capacity to handle mainstream financial assets. The focus shifts from “whether it can be done” to “whether it can replace existing processes.”

JPM Coin integration fills the fund settlement gap

Tokenizing assets is just the first step; settlement of funds is a more critical link. JPM Coin plans to operate within the Canton network to provide a stable settlement medium for on-chain transactions.

The core of this change is to place “on-chain assets” and “on-chain funds” within the same system. Previously, the main issue with RWAs was that, although assets were on-chain, settlement still relied on traditional systems, creating a disconnect.

With JPM Coin’s integration, trading parties can exchange assets and funds within the same network. This capability transforms on-chain transactions from mere record-keeping to a complete financial closed loop.

Moody’s launches a node, credit begins to enter the chain

Beyond assets and funds, the introduction of a credit system further expands Canton’s functional boundaries. Moody’s launching a node brings credit ratings and risk analysis into the on-chain environment.

Credit traditionally plays a foundational role in pricing in finance. Asset value depends not only on the asset itself but also on market risk assessments. Bringing this layer of information on-chain allows pricing logic to be embedded directly into the transaction process.

This change means that on-chain finance is no longer just about asset exchange but begins to include risk assessment and credit pricing. Canton thus gains the capacity closer to a complete financial system.

Cross-border repurchase agreements and collateral flow begin to materialize

In February 2026, cross-border repurchase transactions supported by Canton started to be implemented, involving collateral management and settlement among multiple institutions. Such transactions in traditional finance heavily rely on intermediaries and specific time windows.

By executing on-chain, collateral can move more quickly between different markets. Settlement times are shortened, operational pathways simplified, and capital efficiency improved.

This progress is significant because on-chain activity is no longer just static asset storage but begins to support dynamic transaction flows. Financial activities themselves start to operate on-chain rather than just being recorded.

Institutional acceleration in onboarding is changing market dynamics

As banks, clearinghouses, and trading platforms continue to connect, Canton is gradually forming a network dominated by institutions. The types of participants determine its operational logic, which differs markedly from public blockchains.

This shift is affecting the competition landscape in the RWA track. The focus is no longer solely on the technical capabilities of individual projects but on how many real financial participants the network can accommodate.

As more institutions join the same system, network effects begin to manifest. The more participants, the higher the collaborative efficiency, which further attracts new entrants. This cycle is gradually taking shape.

The realities faced after assets and funds go on-chain

Despite clear progress, on-chain financial systems still face multiple constraints. First, compliance and regulatory issues, as institutional participation demands higher standards of scrutiny and restrictions.

Second, the complexity of technology and systems. Coordinating multiple institutions requires balancing privacy, security, and efficiency, raising higher demands on network design.

Additionally, liquidity remains a key variable. Even if assets and funds are on-chain, insufficient market participation can limit trading depth and efficiency. These factors collectively define the development boundaries of Canton.

Summary

Canton’s recent progress is pushing on-chain finance from the asset display stage toward actual operational deployment. The integration of assets, funds, and credit is gradually enabling it to undertake complete financial processes.

FAQ

Does Canton still belong to the RWA project?
Canton still has RWA attributes, but its current development direction has gone beyond simple asset tokenization, moving closer to financial infrastructure.

Why is institutional participation important?
Institutions bring real assets and trading demand, which are prerequisites for on-chain finance to operate.

How does on-chain settlement differ from traditional settlement?
On-chain settlement emphasizes real-time processing and automation, reducing intermediaries and time costs.

What is the biggest current limitation?
Regulatory compliance, system complexity, and liquidity are the main constraints on current development.