Key Takeaways
- • Digital Asset raised $135 million in a funding round co-led by DRW and Tradeweb, with Goldman Sachs, BNP Paribas and Citadel Securities also investing, according to CNBC.
- • The round underscores growing participation by large banks and trading firms in blockchain infrastructure, with Digital Asset positioning itself as a regulated crypto player.
- • Proceeds will fund adoption of the Canton Network, an open-source public blockchain built for financial institutions to move assets and data while meeting regulatory and privacy requirements.
- • Banks and trading firms are already using Canton to tokenize real-world assets such as bonds, commodities and money market funds, and CEO Yuval Rooz says the network supports trillions of dollars in tokenized assets.
- • The raise follows JPMorgan's launch of its deposit token "JPMD" the prior week, signaling continued institutional movement into digital finance.
Summary
Digital Asset said Tuesday that it raised $135 million in a funding round co-led by DRW and Tradeweb, according to CNBC. Goldman Sachs, BNP Paribas and Ken Griffin's Citadel Securities also participated in the round. The company describes itself as a regulated crypto firm, and its clients include major Wall Street participants such as Goldman Sachs, Citadel and Virtu.
CNBC framed the investment as evidence of how large financial institutions are embedding themselves in crypto, a space it noted was previously associated with fraud, money laundering and other illicit activity. The report said digital assets have become more mainstream as banks including JPMorgan Chase, Goldman Sachs and Morgan Stanley have warmed to the sector. The round came just one week after JPMorgan launched its own stablecoin-style product, a deposit token called "JPMD."
Digital Asset was co-founded in 2014 by Yuval Rooz, a former trader turned entrepreneur, who serves as CEO. The firm competes with companies including Ripple, R3 and Consensys. Rooz said in comments to CNBC that the funding would help the company solidify its role as the backbone of digital finance as global financial institutions increase participation.
The new capital will be directed toward the Canton Network, which Digital Asset originally developed and has since made open-source. Canton is a public blockchain designed for financial institutions to transfer assets and data while satisfying regulatory and privacy requirements. Banks and trading firms are using the network to tokenize real-world assets including bonds, commodities and money market funds. Rooz said the raise would accelerate onboarding of additional high-quality assets, and according to him the network now supports trillions of dollars in tokenized assets.
CNBC framed the investment as evidence of how large financial institutions are embedding themselves in crypto, a space it noted was previously associated with fraud, money laundering and other illicit activity. The report said digital assets have become more mainstream as banks including JPMorgan Chase, Goldman Sachs and Morgan Stanley have warmed to the sector. The round came just one week after JPMorgan launched its own stablecoin-style product, a deposit token called "JPMD."
Digital Asset was co-founded in 2014 by Yuval Rooz, a former trader turned entrepreneur, who serves as CEO. The firm competes with companies including Ripple, R3 and Consensys. Rooz said in comments to CNBC that the funding would help the company solidify its role as the backbone of digital finance as global financial institutions increase participation.
The new capital will be directed toward the Canton Network, which Digital Asset originally developed and has since made open-source. Canton is a public blockchain designed for financial institutions to transfer assets and data while satisfying regulatory and privacy requirements. Banks and trading firms are using the network to tokenize real-world assets including bonds, commodities and money market funds. Rooz said the raise would accelerate onboarding of additional high-quality assets, and according to him the network now supports trillions of dollars in tokenized assets.
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