Why we are working with Canton on mobilising FTFs
It was recently announced that TreasurySpring has joined the Canton Network industry working group to advance digital asset best practices in the corporate treasury space. We have also been participating in live proof-of-concept repo and reverse repo trades on the network, using our own node. These transactions have involved some of the most established names in global (and digital) markets, including Tradeweb, LSEG, Citadel, DRW, Société Générale, and Archax.
TreasurySpring's long-term vision is clear: frictionless liquidity and collateral mobility across borders, sectors and currencies, all within an institutional governance framework. That vision has guided the way we built our Fixed-Term Funds (FTFs), our digital cash investment platform, and now our approach to digital assets. The decision to work with Canton Network is a natural extension of that mission.
This article explains why we believe blockchain can unlock tangible value for our cash investor clients, and why Canton's institutional architecture is the right place to start.
A practical view of blockchain's value
Blockchain is often discussed in abstract terms, but the underlying benefits are concrete. A shared ledger can increase security and resilience, while enabling real-time updates to ownership records. In practice, that means money and collateral can move more quickly, with less operational friction and reduced settlement risk.
For our clients, these improvements are not theoretical. They directly relate to the way liquidity is managed, how collateral is deployed, and how risk is controlled. We believe that the transparency of this technology has the ability to enable an optimal combination of better risk-adjusted returns, lower operational risk, and improved capital efficiency. In other words, FTFs can develop even more utility.
The value of Fixed-Term Funds mobilised on Canton
FTFs have historically been investment instruments only. They are designed to be held to maturity; ownership records are maintained securely by an administrator/transfer agent; and there is rarely any movement of the FTF itself across its lifetime.
That model has opened up significant opportunities for our 850+ clients, giving them access to markets that were previously out of reach. It works well for stand-alone cash investments.
There is, however, further value to unlock through greater mobility of those investments. We have already introduced multiple innovations on traditional rails and will continue to do so. Our view is that digital rails can expand this further for clients and for the market overall, and a network such as Canton could provide that next step by enabling FTF ownership to move in real time between approved parties.
If you can mobilise an FTF, you can create optionality and value for the holder while still being fully invested in the underlying investment. That opens a new set of use cases for our clients, whether they be treasurers, private fund clients, large corporations or financial institutions.
What this could look like in practice
Imagine a treasury team that needs to post collateral for a derivatives trade. Today, this often requires either cash or specific eligible securities (requiring the client to maintain custody accounts, dealer infrastructure, deliver T+2 and deal with fails). With a tokenised FTF on Canton, the process could be as simple as: "tokenise this FTF and deliver to xyz.bank under the ISDA or collateral support agreement." Within seconds, the FTF has been mobilised and delivered to its destination.
Or consider a corporate ownership chain. It is common for private equity or holding structures to move assets internally – today, this is a clunky process which requires multiple cash movements, investment and redemption from cash products and exposes the client to credit risk in local banks. A digital representation of an FTF would require just one initial investment in an FTF, with value able to move seamlessly through the ownership chain without unnecessary exits, reducing friction, operational risk and preserving yield.
Another example: a six-month secured bank FTF held for yield could be used as collateral for a short-term liquidity need. Instead of breaking the investment early, a firm could borrow against the FTF to bridge a temporary liquidity gap. This kind of optionality could allow treasurers to lock up cash for longer, capture higher rates, and still maintain liquidity when required. At the same time, the bank that is receiving the funding from the FTF (typically via the reverse repo market) has a stable balance, allowing for a better capital and liquidity position and reduced structural instability.
These are not speculative ideas. They are concrete, client-driven use cases that align with existing treasury and collateral practices – just with more efficient, real-time rails.
Why Canton Network
Canton is where the institutional market is building. Many of the world's largest financial institutions are already developing on the network.
Canton also addresses two essential requirements for institutional adoption:
- Privacy: only parties involved in a transaction can see its details.
- Shared truth: the network still provides the core advantages of blockchain: a shared register, digitally signed transactions, and near-real-time settlement.
This combination is critical for clients and counterparties who need both confidentiality and a trusted system of record.
Real use cases, not more proofs of concept
The industry has moved past experimentation. Institutions on Canton are now looking to deploy real-world use cases that aim to drive revenue and increase transparency.
Collateral mobility is consistently at the top of that list. And it is here that TreasurySpring can play a unique role. Our clients sit on billions of value in prime collateral that is currently largely immobile. If we can mobilise that collateral safely and efficiently, it benefits both sides: financial counterparties can reduce credit exposures and improve capital efficiency, while clients gain better pricing, liquidity and optionality.
This is a rare alignment: a real problem with a real solution, and the right market infrastructure to enable it.
An institutional network, not permissionless crypto
Canton is built for regulated institutions. Transfers only occur between parties that have onboarded each other, just as in today's financial system. AML, security and governance are foundational, not optional add-ons.
This matters because fully permissionless models, whilst intellectually attractive, have many challenges for regulated financial institutions. Such institutions seek the advantages of blockchain, but within the existing model of transactions between known, regulated counterparties that trust each other, but need a shared truth and privacy built-in. Fully permissionless chains will, no doubt, have great success in the future, particularly where parties do not know or trust each other, for example in permissionless DeFi markets.
Our focus is institutional trust and compliance. Canton provides the digital rails to move beyond the old world of clunky transfers, T+2 settlement and lengthy transaction-specific documentation, while preserving the safeguards that treasurers and CFOs require.
In summary
We believe that blockchain technology can unlock real value in the treasury and cash management world, starting with Fixed-Term Funds and collateral mobility. Canton provides the institutional foundation needed to make that vision practical, secure and compliant, and TreasurySpring’s work with Canton is a direct continuation of our mission.
As the network evolves, we expect to expand these capabilities in a measured, client-driven way. Our priority remains the same: enabling frictionless liquidity and collateral mobility, with governance and transparency at the core.
If you'd like to explore use cases, we'd be glad to discuss them.
*TreasurySpring’s blogs and commentaries are provided for general information purposes only, and do not constitute legal, investment or other advice.