Interstice Digital has launched a cross-chain swap engine built with FalconX that connects the Canton Network with Ethereum, Solana and Robinhood Chain.

According to Tuesday's announcement, the engine is non-custodial: assets can be swapped across the four networks without Interstice taking custody of funds or executing transactions on users' behalf.

FalconX, a digital asset prime brokerage serving institutional investors, provides liquidity for the engine. The system is designed to connect Canton's institutional markets with assets and trading activity on public blockchains, giving users a route between tokenized assets on Canton and liquidity on networks such as Ethereum and Solana. Robinhood Chain, for its part, is the retail brokerage's Ethereum Layer 2 network built using Arbitrum technology as part of its push into tokenized stocks and other onchain assets.

Canton, developed by enterprise blockchain firm Digital Asset, is a public blockchain built for institutional finance, with privacy and permissioning controls designed for regulated transactions and tokenized assets. Its ecosystem includes major financial institutions such as JPMorgan, Goldman Sachs and BNP Paribas. Direct interoperability between permissioned institutional networks and open blockchains has been a recurring challenge for tokenized assets, given the privacy, compliance and control requirements involved.

Interstice is a wholly owned subsidiary of Everyrealm, a firm known for investing in virtual real estate and other metaverse assets, and is backed by investors including a16z Crypto, Coinbase Ventures, Galaxy and Brevan Howard. The company did not disclose which assets are initially supported or provide transaction volume figures for the swap engine.

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Canton expands institutional tokenization activity

The integration comes as more traditional financial institutions use Canton for tokenized assets and blockchain-based settlement, and as tokenization activity scales on public chains in parallel: BlackRock's BUIDL is among the tokenized Treasury funds now operating across multiple public networks.

In July, electronic trading platform Tradeweb executed an onchain US Treasury trade in which Franklin Templeton transferred a tokenized Treasury security to Virtu Financial in exchange for tokenized cash. Tradeweb provided execution and price discovery, while Canton synchronized settlement between the two assets in real time. Tradeweb said it was the first real-time purchase and sale of a tokenized US Treasury settled against USDCx, a USDC-backed stablecoin issued on Canton, with other participants including Societe Generale, Digital Asset and Blockdaemon.

Societe Generale has also deployed its euro- and dollar-denominated stablecoins on Canton for tokenized collateral, repo financing and institutional settlement, while Visa has tested private stablecoin settlement on the network.

Other initiatives include a Japanese government bond collateral pilot involving Mizuho and Nomura, and S&P Dow Jones Indices placing its iBoxx US Treasuries Index on Canton. A proof-of-concept (PoC) trial for digital collateral management using Japanese government bonds is documented by JPX.

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