Key Takeaways
Quant Network on May 12 detailed its participation in three key institutional initiatives aimed at using atomic settlement to eliminate the multi-day settlement window for tokenized assets, signaling a major push by financial institutions to upgrade market infrastructure.
"Banks and credit unions recognize that stablecoins and tokenized assets are the next major evolution of financial services, but they need a bridge that is compatible with their existing core banking technology," Alex Treece, co-founder and CEO of Stablecore, said in a recent statement regarding a similar integration, highlighting the need for platforms that connect legacy and digital systems.
The projects include collaborations with the Bank of England, the UK's GBTD project, and Hong Kong's EnsembleTX program. These initiatives focus on implementing an atomic Delivery versus Payment (DvP) mechanism on a blockchain. This process ensures the instantaneous exchange of assets and payment, which removes the T+2 settlement window, eliminates counterparty risk, and could free up hundreds of billions in capital currently required as pre-positioned collateral.
This move is part of a broader trend toward tokenizing real-world assets (RWA), a market that Boston Consulting Group projects could reach $10–16 trillion by 2030. The shift is underscored by the DTCC's separate initiative to tokenize U.S. Treasury bonds on the Canton Network, a blockchain infrastructure developed by Digital Asset. The Canton Network is designed for institutional use and recently raised $300 million at a $2 billion valuation, according to industry reports.
The push for more efficient settlement infrastructure is gaining momentum across the financial sector. Stablecoin issuer Circle is developing its own Layer-1 blockchain, Arc, which raised $222 million, while JPMorgan has launched a tokenized U.S. Treasury money-market fund on Ethereum. These developments show how regulatory clarity, such as the GENIUS Act passed in 2025, is accelerating institutional investment in blockchain infrastructure to improve the speed and security of financial transactions.
This article is for informational purposes only and does not constitute investment advice.
