Canton Network plans to raise $500 million to build the Canton Coin treasury.

Supporters of Canton Network are negotiating to raise approximately $500 million to establish a listing vehicle specifically for investing in the bank-supported blockchain token Canton Coin. This initiative makes it the latest entrant in the digital asset treasury field following the pioneering efforts of Strategy. Besides investing, this vehicle will enhance the overall utility of the Canton Network by acting as super validators and building applications. This move signifies that traditional financial giants are securitizing private blockchain tokens to bring them into the public investment arena.

Ambition of Bank Blockchain's IPO: $500 Million Digital Asset Treasury

According to Bloomberg, supporters of the Canton Network are pushing a major initiative aimed at bringing the blockchain's token Canton Coin into the broader investor spotlight by establishing a listed investment vehicle.

• Fundraising goal: The aim is to raise approximately $500 million, with trading giants like DRW Holdings and Liberty City Ventures contributing a significant portion of the funds in the form of the unlisted Canton Coin.
• External funding: Sources indicate that between $100 million and $200 million is expected from external investors.

If the transaction is completed, the carrier will become the latest digital asset vault company. This model was pioneered by Michael Saylor's strategy, accumulating cryptocurrency through publicly listed entities, thereby providing investors with exposure to crypto assets in the traditional form of stocks. This model has attracted hundreds of imitators this year, with a cumulative asset value reaching billions of dollars.

Core Functions of the Carrier: Enhance Network Usability

The proposed listing vehicle is not only limited to token investments but aims to become a core contributor within the Canton Network ecosystem:

• Super Validators: This carrier will act as a Super Validator, contributing directly to the usability of the network by maintaining its operation and security through the generation of Tokens.
• Build Applications: It will also focus on building applications related to the Canton Blockchain, further expanding the network's use cases and value capture capabilities.

Canton Network was launched by Digital Asset Holdings in 2023, and its uniqueness lies in allowing users to maintain partial information privacy, which is considered an ideal feature for handling mainstream financial transactions. DRW and Tradeweb Markets led Digital Asset's $135 million funding round in June, with financial giants like Goldman Sachs Group and Citadel Securities also participating.

Tokenized Assets and Challenges: Risks and Opportunities of Unlisted Tokens

Although Canton Coin has not yet been listed on cryptocurrency exchanges, the institutional participants behind it suggest great potential.

• Institutional participation: Operators, including mainstream CEX, are active participants in the Canton Network, which suggests the possibility of a future token public listing. A report by Copper Research also indicates that the Canton Network has experienced “parabolic growth” in recent months.
• High-risk precedent: However, investing in listing vehicles for tokens that are not yet on the market carries high-risk precedents. For example, Alt5 Sigma Corp. announced raising $1.5 billion to acquire the WLFI token associated with the Trump family, but the token's value has halved after its listing, and Alt5's stock price also plummeted.

In addition, the digital asset vault model is currently facing challenges after experiencing a frenzy in the first half of the year. Some DAT operators have begun to sell the tokens they were supposed to hoard to fund stock buybacks in order to stabilize their stock prices.

Conclusion

Canton Network's plan to raise $500 million to establish a digital asset vault is the latest attempt by traditional financial giants to leverage innovative models in the crypto market. This move will not only provide significant liquidity and exposure for Canton Coin but will also enhance the network's institutional-level utility through its role as a super validator. For crypto investors, this project offers a unique opportunity to participate in the value growth of bank-backed private blockchain tokens in a traditional security format. However, given that the token has not yet been publicly listed and the volatility of the DAT model, investors must remain highly cautious and vigilant.