Blockchain solutions provider Digital Asset and the Depository Trust & Clearing Corporation (DTCC) have completed their US Treasury Collateral Network pilot project on the Canton Network, which brought together 26 market participants and conducted 100 transactions, Cointelegraph reported.

The project used tokenized “digital twins” of Treasury bonds (USTs) in four use cases, leveraging Canton Network global synchronization and DTCC LedgerScan capabilities to demonstrate transaction flows and default cases.

In the first use case, digital twins of real assets (USTs) are created for investors and registered with a central securities depository. The digital twins can be used for trading, lending or staking, among other purposes.

In the second use case, in response to a margin call, tokenized UST assets are transferred, visible in real time.

In the third use case, an investor requests the return of their margin deposit and the trade is settled immediately, which would normally take a day or more.

In the final use case, an investor defaults and the counterparty notifies the custodian to seize the USTs, with the transfer of ownership fully traceable and auditable on the Canton Network.

The pilot project was conducted on the Canton Network, which was launched by Digital Asset and several large financial institutions in June 2023, ensuring that transactions are completed instantly and the data and privacy of all parties are controlled. DTCC tracks and reconciles tokenization and changes in underlying holdings across the market.