TL;DR
- Linked to Nasdaq’s Calypso risk engine, the three-month Canton pilot delivered 24/7 automated margin calls and instant collateral transfers on a privacy-preserving blockchain.
- By eradicating manual, time-lagged workflows, the solution slashed capital lock-up, cut counterparty risk, and enabled near-instant collateral mobility across legacy and digital assets.
- A collaborative proof-of-concept, uniting Nasdaq, QCP, Primrose, and Digital Asset, sets the stage for scalable on-chain collateral services in structured credit, FX, and beyond.
A groundbreaking pilot between Nasdaq and QCP Group has successfully demonstrated an institutional-grade, on-chain collateral management solution on the Canton Network. Built to integrate seamlessly with Nasdaq’s Calypso platform, this infrastructure addresses persistent inefficiencies in OTC derivatives workflows, offering 24/7 automation and shared ledger visibility.
By combining traditional financial systems with blockchain advancements, this initiative represents a significant step forward in achieving real-time capital efficiency and enhancing collateral mobility across markets.
Pilot’s Bold Experiment
For three months, Nasdaq, QCP, Primrose Capital Management, and Digital Asset worked together to create and evaluate a complete margining and collateral pledging system on Canton. The trial connected Calypso’s trusted risk engine to the network’s privacy-preserving ledger, enabling automated margin calls and instant collateral transfers.
Participants carried out live simulations in crypto derivatives, fixed income, and OTC swap workflows, confirming that on-chain processes can satisfy institutional uptime and compliance requirements without interrupting current operations.
Addressing Institutional Pain Points
Traditional OTC markets have long grappled with manual, time-lagged collateral routines that tie up liquidity and elevate counterparty risk. The Canton pilot tackled these frictions head-on by streamlining dispute resolution through shared data visibility and reducing over-collateralization via faster settlement cycles.
Firms experienced near-instant collateral mobility across both legacy and digital assets, slashing capital lock-up and enhancing balance sheet efficiency. The result: a blueprint for institutions to manage collateral around the clock and reallocate resources with unprecedented agility.
Technology Synergy in Action
This initiative leveraged complementary strengths: Nasdaq’s Calypso platform delivered enterprise-grade risk controls and regulatory reporting, QCP contributed deep crypto market expertise, Primrose offered quantitative trading insight, and Digital Asset provided the Canton protocol’s interoperability and privacy features.
The unified solution demonstrated how modular blockchain networks can plug into heavyweight trading systems, preserving security while introducing programmable workflows. Stakeholders noted that this architecture paves the way for rapid deployment of new OTC spot and derivatives products.
Path to Wider Adoption
With proof of concept in hand, Nasdaq and QCP plan to expand their offering into structured credit, FX-linked instruments and liquidity provisioning solutions, all underpinned by Canton’s four-trillion-dollar tokenized asset ecosystem. Next steps include regulatory pilots and service-level testing with additional global banks and asset managers.
