Flowdesk Joins Canton Network's Initiative to Create Advanced On-Chain Solution for Collateral and Margin Management

Flowdesk, a cryptocurrency market maker, has become the latest participant in the Canton Network's initiative to create an advanced on-chain solution for collateral and margin management

Crypto market maker Flowdesk is the latest participant to join the Canton Network’s initiative to create an advanced on chain solution for collateral and margin management in bilateral crypto derivatives.

The Flowdesk involvement in the initiative, which also sees the participation of Digital Asset, QCP, and various trading counterparties aims to build an innovative infrastructure that will leverage the Canton Network’s privacy features.

The collaboration aims to address the persistent challenges faced by institutions in managing collateral and margin in a decentralized and efficient manner.

The initiative aims to build an advanced collateral and margin management solution on the Canton Network for bilateral crypto derivatives.

It will also integrate the ISDA (International Swaps and Derivatives Association) standard CDS (Credit Default Swap) contract on the Canton Network.

The Canton Global Collateral Network founded by Digital Asset is a platform designed to streamline and automate the process of managing collateral and margin for institutions.

It aims to reduce the capital requirements for crypto derivatives trading, which is a major barrier for wider adoption.

The initiative is also focused on developing an economical and regulatory compliant framework for managing margin using blockchain technology.

Earlier this year, Singapore-based institutional trading venue QCP joined the Canton Network.

Circle also announced plans to launch a native version of USDC stablecoin on the Canton Network. That follows its acquisition of tokenized money market (MMF) fund startup Hashnote, which had already launched its USYC MMF on Canton.

“Canton Network’s offering provides the ability to manage collateral and margin on chain, aligning with Flowdesk’s mission to create scalable and robust infrastructure for the digital asset economy,” said Simon Nursey, Head of Derivatives at Flowdesk.

Key features of the platform will include ISDA CSA-compliant smart contract collateral agreements and automated processes for handling margin calls and resolving disputes.

Earlier this year Flowdesk finalized a $102 million equity financing round as well as debt from BlackRock managed funds.

The Canton Network is a scalable and secure blockchain designed for enterprise applications. It is a subsidiary of the Canton Group, a leading provider of blockchain solutions for the financial industry.

Collateral mobility is widely considered a prime use case for distributed ledger technology and Digital Asset is tackling the challenge from different angles. For example, it recently collaborated with Euroclear for tokenized collateral to enable instant transfers of non cash assets to meet margin requirements.