Ethereum News Update: Canton’s Privacy-Centric Approach Attracts Institutions Away from Public Blockchains

Canton Network: Pioneering Institutional Blockchain Tokenomics

The Canton Network has become a significant player in the blockchain sector, introducing a new model for large-scale institutional adoption. Distinct from many other projects, Canton deliberately chose not to rely on an initial coin offering for its launch. This decision reflects its dedication to serving major financial organizations. Yuval Rooz, a co-founder of Digital Asset, highlighted the team's decade-long effort to perfect the network's structure, emphasizing their thoughtful approach to tokenomics.

Innovative Architecture for Institutional Needs

Canton’s design directly addresses the unique requirements of financial institutions, focusing on privacy and interoperability. Described by Digital Asset as a “network of networks,” Canton facilitates secure and private transactions, particularly for tokenizing real-world assets (RWA). Its standout feature is a “need-to-know” privacy framework, which grants regulators and issuers access to transaction details while safeguarding confidentiality for other users. Unlike protocols such as Zcash, which emphasize complete anonymity, Canton’s privacy model is built to comply with regulatory standards like Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.

Rapid Institutional Adoption and Investment

Canton’s momentum has accelerated with strong institutional support. In June 2025, the network secured $135 million in funding from prominent investors including BNP Paribas, Goldman Sachs, and DTCC. The project’s appeal was further demonstrated in November when Tharimmune, a biotech company, raised $540 million to create a Canton Coin (CC) treasury, using the funds to stake CC tokens as a super validator. These developments highlight Canton's growing popularity among capital-intensive industries seeking enterprise-grade blockchain solutions.

Shifting Preferences in the Financial Sector

The financial industry is increasingly gravitating toward specialized blockchains like Canton, moving away from public networks such as Ethereum, where transparency can compromise sensitive transactions. For example, Goldman Sachs has adopted Canton for its Digital Asset Platform (GS DAP), taking advantage of the network’s privacy features and efficient capital management. Notably, Canton’s RWA total value locked (TVL) is $96 for every $1 of market capitalization, a dramatic difference compared to Ethereum’s $0.03 ratio, underscoring its value for institutional use.

Addressing Privacy in Enterprise Blockchain

Privacy has become a central concern for institutions. Public blockchains reveal all transaction information, posing risks for banks and corporations managing substantial assets or confidential dealings. As one analyst observed, the transparency celebrated in the crypto world can become a liability when handling transactions worth billions. Canton’s approach—offering both privacy and interoperability—enables secure cross-chain operations while maintaining controlled access to sensitive data, making it a practical choice for enterprise adoption.

Future Prospects

Canton’s continued success will depend on its ability to maintain institutional confidence and expand its ecosystem for real-world asset tokenization. With strong backing from leading global financial entities and a focus on practical applications, Canton is well-positioned to reshape how blockchain technology serves the needs of institutional finance.