Banks are Flocking to this Layer 1 for Stablecoin Settlement

Happy Saturday, one and all,

This week, I was on the ground in London for a series of major digital asset events. Catching up with leaders like Michael Shaulov (CEO of Fireblocks) and Robin Nordnes (CEO of Raiku), it’s clear the vibe has shifted. We aren’t asking if stablecoins will be regulated anymore; we are debating which infrastructure will actually handle the trillions in volume on the horizon.

The common thread in my conversations? A growing impatience with “blunt tools” like ownership caps. As Robin Nordnes told me:

“If we can get the rails right, the caps become a problem that’s already solved.”

The consensus is forming: the future isn’t just about the coin, it’s about the privacy-enabled rails that Wall Street can actually use.

The Regulatory Backdrop: US & UK Momentum

Before we dive into the plumbing, the “rules of the road” hit two major milestones this week:

• The US Clarity Act: The Senate Banking Committee passed this landmark bill (15-9). It paves the way for regulated “reward programs,” moving the industry significantly closer to a federal standard for stablecoin yield.

• The UK U-Turn: In a major pivot, the Bank of England is scrapping its proposed £20,000 ownership cap. Deputy Governor Sarah Breeden admitted they were likely “too cautious.” By removing these friction points, the UK is officially choosing global competitiveness over rigid restriction.

Why the Canton Network is Winning the “Rail War”

While internal research at BeInCrypto often highlights giants like Visa and Mastercard, the “dark horse” for mass institutional adoption is the Canton Network.

Launched by a consortium including Goldman Sachs, BNP Paribas, and Microsoft, Canton solves the one issue that has historically kept banks at bay: Privacy.

Unlike public chains where every transaction is visible, Canton is a privacy-enabled Layer 1. It allows institutions to connect formerly siloed systems while preserving the strict confidentiality required for regulated markets.

We are already seeing the “Institutional Pivot” in action. Société Générale-FORGE recently executed the first US tokenized bond issuance on Canton. This serves as a vital proof of concept: regulated stablecoins (like EURCV) moving across a rail that banks actually trust.

Market Analysis: Tracking the Canton Ecosystem

Canton was designed as a “network of networks” with a privacy-first architecture. It allows institutions to maintain private ledgers while transacting across a shared backbone. For those tracking the growth of this specific ecosystem, there are several ways the market is currently viewing exposure:

1. Network Utility: The most direct method is through Canton Coin (CC), the utility token used for network synchronization and fees. The protocol employs a “Burn-Mint Equilibrium” to balance supply with usage. Because it launched without a pre-mine, circulation is tied closely to early utility. It is currently listed on exchanges like Kraken, OKX, and Bybit.

2. Infrastructure Participation: Growth is also being driven by hardware providers. Participants with the technical capacity are running Validator Nodes, specifically “Super Validators,” earning rewards for maintaining the global synchronization layer. This allows entities to contribute to the network’s operational health in exchange for protocol-level emissions.

3. The “Backer” Strategy: Since the primary developer, Digital Asset, is private, indirect exposure often comes through its high-profile stakeholders. Firms like Goldman Sachs (GS), BNY Mellon (BK), and S&P Global (SPGI) are actively integrating Canton into their own settlement workflows.

As stablecoin adoption scales toward a projected $2 trillion by 2028, these institutional frameworks will likely define how that volume actually moves.

To wrap up, I highly recommend this week’s BeInCrypto Podcast featuring Raagulan Pathy, the former Circle Singapore CEO now leading KAST.

Raagulan explains why first-gen neobanks are merely “lipstick on a pig” compared to stablecoin-native infrastructure. KAST leverages institutional-grade tech like Fireblocks to offer sustainable 5% yields and instant settlement across 150 countries.

It’s a perfect real-world case study for our discussion: when the rails are right, the “crypto” disappears and you’re simply left with a financial system that is fundamentally better than a bank.

Whether it’s physical gold at $4,700, Bitcoin gaining above $80,000 or RWA lending on Solana, the smart money is moving where the political layer can’t reach.

Have a perfect weekend,

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Brian McGleenon,

Global Head of News, BeInCrypto