TL;DR:
LayerZero has become the first interoperability protocol to operate on Canton Network, the institutional blockchain built by Digital Asset and backed by Goldman Sachs, Microsoft and the DTCC. The announcement was made from New York. It marks a crucial step toward integrating the traditional financial system with global onchain infrastructure.
Canton is already a major success in the market. The platform processes between $300 billion and $400 billion in daily transactions of U.S. Treasury repos through this network, positioning it as a top-tier operational infrastructure. That astronomical volume is complemented by nearly 400 ecosystem clients and $100 billion in assets managed under its rails.
This integration will allow regulated financial institutions operating on Canton to route tokenized assets to more than 165 public blockchains without compromising the compliance standards the sector demands. Canton was designed with configurable privacy to meet the confidentiality requirements of regulated finance, a feature that sets it apart from most public chains.
Bryan Pellegrino, CEO of LayerZero Labs, defined each party’s role with precision: “Canton already built the rails for traditional finance. LayerZero’s job is to make sure those assets are available in every global market, across blockchains.” Eric Saraniecki, Head of Network Growth at Digital Asset, noted that the integration is key for issuers on any chain to bring their assets to Canton and benefit from its privacy model, and for Canton issuers to move them into other ecosystems.
Unlike traditional bridges, LayerZero does not operate as a custodial bridge. Its architecture is designed to make any token or application natively compatible with any blockchain, eliminating at the root the custody risk that has compromised previous cross-chain interoperability solutions.
Testing already involved the participation of Goldman Sachs, BNP Paribas, DRW, QCP, Liberty City Ventures and Tradeweb, the same institutions that took part in Digital Asset’s $135 million funding round in June 2025, led by DRW Venture Capital and Tradeweb Markets, with participation from Circle Ventures and Citadel Securities.
