The post Canton Network Drives Real-Time Collateral Transformation as DTCC Partnership Targets 2026 Launch appeared on BitcoinEthereumNews.com.

TLDR: Financial firms hold $25 billion in excess or unremunerative collateral due to settlement delays. Canton Network completed live weekend trades using tokenized US Treasuries for cross-collateral repo transactions. The DTCC partnership will tokenize DTC-custodied US Treasuries on the Canton Network in the first half of 2026. Tier 1 institutions could generate $346 million annually through improved collateral mobility via tokenization.   Financial institutions face mounting pressure from inefficient collateral management systems that lock up billions in underutilized assets.  Canton Network has demonstrated practical solutions through live weekend trading using tokenized real-world assets, addressing critical pain points in settlement delays and operational costs.  The platform’s partnership with DTCC to tokenize U.S. Treasuries in early 2026 marks a pivotal shift from theoretical benefits to market-ready infrastructure for institutional digital asset adoption. Quantifying the Cost of Inefficient Collateral Systems Financial firms manage approximately $74 billion in collateral on average, yet current systems create substantial opportunity costs.  A ValueExchange report reveals that 25 percent of collateral, roughly $25 billion per firm, remains either excess or unremunerative overnight.  Today, up to 25% of collateral sits excess or unremunerated, while settlement delays and operating costs erode returns, creating billions in opportunity cost for institutions. Onchain collateral changes that with instant settlement and real-time mobility that drives… pic.twitter.com/qTadSB4gM8 — Canton Network (@CantonNetwork) January 9, 2026 These inefficiencies stem from settlement delays, manual processing requirements, and a lack of delivery certainty that prevent optimal asset utilization. Operating costs compound these challenges, consuming up to 57 percent of trade value, while 70 percent of firms struggle with collateral delivery.  Canton Network shared on their platform that settlement delays and operating costs erode returns, creating billions in opportunity costs for institutions.  Additionally, 35 percent of firms post more than half their collateral overnight, further reducing potential earnings from these…

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Filed under: News - @ January 10, 2026 6:16 am