Canton Network Brings Custody-native Credit Onchain with PCP

WHY THIS MATTERS
Tokenisation has long promised to transform financial markets, but without embedded financing capabilities, its impact remains limited. PCP’s partnership with Digital Asset and the Canton Foundation addresses this missing layer by enabling institutions to borrow and lend against tokenised assets directly from custody. This is a critical step in making tokenised assets economically productive, rather than simply transferable representations of value.

By introducing custody-native lending, the collaboration enhances capital efficiency while maintaining the governance, compliance, and control required by institutional participants. It allows assets such as tokenised securities, funds, and even Bitcoin to be used as collateral without being moved, reducing operational risk and complexity. As institutions increasingly explore blockchain-based infrastructure, the ability to integrate credit workflows seamlessly into existing custody models is likely to be a key driver of adoption.

PCP (Programmable Credit Protocol), the credit orchestration infrastructure for tokenized assets, today announced partnerships with Digital Asset, the technology company behind the Canton Network, and the Canton Foundation, the independent governing body of the Canton Network, to bring institutional credit infrastructure to the Canton ecosystem.

The collaboration was confirmed during Abu Dhabi Finance Week 2025 by Rico van der Veen, CEO of PCP; Melvis Langyintuo, Executive Director at the Canton Foundation; and Bayo Atkins, Sales Director MENA at Digital Asset. Through it, PCP will enable custody-native lending against assets on the Canton Network, allowing banks, hedge funds, market makers, and other market participants to borrow and lend against tokenized securities, funds, deposits, Canton Coin, Bitcoin (CBTC), and other assets – without moving collateral out of custody.

Rico van der Veen, CEO at PCP, said: “Every asset on Canton should be financeable — not just transferable. Whether it’s a tokenized Treasury, a fund share, Canton Coin, or Bitcoin, institutions need the ability to borrow against it with robust institutional controls. By working with Digital Asset and the Canton Foundation, we’re bringing the credit layer that turns canton from settlement network into full financial market infrastructure.”

Melvis Langyintuo, Executive Director at the Canton Foundation, said: “Tokenization alone does not create markets — financing does. With PCP, assets on the Canton Network can function as working collateral without leaving regulated custody, improving capital efficiency while preserving control. This collaboration helps expand the financial workflows that institutions can execute on Canton.”

Bayo Atkins, Sales Director MENA at Digital Asset, said: “Canton was designed to enable the safe and interoperable tokenization of real-world financial assets. By integrating credit infrastructure through PCP, institutions can unlock additional utility from the assets they hold on the network, enabling new financing workflows while maintaining custody, compliance and control.”

The Canton Network is rapidly emerging as foundational infrastructure for institutional tokenization, with major financial institutions and Financial market infrastructure providers including DTCC and Euroclear – utilizing its privacy-preserving blockchain architecture. While tokenization improves settlement and interoperability, assets become economically productive only when they can be used as collateral. PCP provides the credit infrastructure that enables institutions to finance assets directly from custody, unlocking capital efficiency across the network.

PCP’s infrastructure allows institutions to request credit, receive competitive quotes from counterparties through its FIX-based RFQ messaging system, and receive funding within minutes – while collateral remains locked in place at the borrower’s custodian. Margining, substitution, and liquidation are handled programmatically, enabling institutions to finance assets without transferring them out of custody and without introducing additional intermediaries or manual reconciliation.

FF NEWS TAKE
This move reinforces a broader industry shift: tokenisation is moving beyond settlement innovation toward full market infrastructure. PCP’s credit layer strengthens Canton’s positioning as more than just a blockchain for asset issuance—it becomes a platform where financing, liquidity, and trading workflows can coexist.

That said, the real test will be adoption. Institutional uptake depends not only on technology, but also on regulatory clarity, counterparty trust, and market depth. If PCP can demonstrate consistent liquidity and robust risk management at scale, this model could become a blueprint for how tokenised assets are financed globally.

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