Settlement

Understanding Canton Network: Financial Privacy, Atomic Settlement, and Institutional Adoption

Understanding Canton Network: Financial Privacy, Atomic Settlement, and Institutional Adoption

Buying a security changes records in several places. A trading venue records the execution, a custodian records the securities position, and a bank maintains the cash ledger. Each institution has its own account of the transaction. Reconciliation checks that amounts, rights, and processing states agree. A single public database might appear to simplify the problem, but institutions cannot publish their customers’ balances and trading strategies to everyone operating the infrastructure.

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