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LayerZero said Thursday it has integrated with Canton Network, becoming the first interoperability protocol live on the institutional blockchain and opening a route for tokenized assets on Canton to move across more than 165 public chains.
The tie-up is aimed at solving one of tokenization’s biggest bottlenecks, which is how to connect regulated onchain assets to broader pools of liquidity without sacrificing privacy or compliance.
The announcement matters because Canton has emerged as one of the main blockchain rails for traditional finance. Canton said this week that Broadridge’s distributed ledger repo platform handles about $300 billion to $400 billion in onchain US Treasury repo volume each day. The network is also expanding as infrastructure for tokenized Treasuries and bank-issued digital cash.
Institutions issuing assets on Canton could tap external stablecoin liquidity for primary purchases, while tokenized bonds, equities, and other securities created inside Canton could potentially reach secondary markets beyond the network’s native ecosystem.
The timing also fits a bigger shift in traditional finance. NYSE is working with Securitize on infrastructure for tokenized securities, and earlier this month the SEC approved a Nasdaq proposal that allows certain stocks to trade and settle in tokenized form. That suggests the market is moving past proof of concept and toward real market structure buildout.
Central banks are also starting to take the plumbing more seriously. The Bank of England is considering broadening the range of tokenized assets that could be accepted as collateral, while the European Central Bank confirmed banks can use tokenized collateral in Eurosystem credit operations starting in March 2026.
For LayerZero, the Canton integration extends its institutional pitch at a time when interoperability is becoming less about bridging crypto natives and more about linking regulated financial infrastructure to public blockchain liquidity.
LayerZero’s own site currently lists $75 billion or more in assets secured, more than $200 billion in historical volume, and 700-plus companies powered.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
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