S&P Tokenizes Treasury Index on Canton Network
S&P Dow Jones Indices has marked the iBoxx US Treasuries Index on the Canton Network, offering a major fixed income benchmark as a digital asset and signaling the shift in traditional finance to onchain data infrastructure.
In Tuesday's announcement, S&P Indices said it has teamed up with Caico, a provider of digital asset market data and supporting the index's tokenization and onchain offering.
The iBoxx US Treasuries index is a widely used benchmark that tracks US government bonds of various maturities, serving as a reference point for institutional investors and fixed income products.
A token index is not an investable product. Instead, it allows financial institutions building digital products to integrate benchmark data, including pricing and index levels, directly into the blockchain system.
S&P Dow Jones Indices will continue to control who can access and use the benchmark through the permissions included in the token. Kaiko provides technology that enables indexing and access to the blockchain.
The companies said the approach could be expanded to other indices as demand for blockchain-based financial systems grows. The goal is to make benchmark data easier to access and use, especially since U.S. Treasuries play an important role as collateral in digital financial markets.
Canton Network is a public blockchain focused on institutional use with over 600 participating institutions and validators. It is backed by Goldman Sachs and Citadel, among others.
Related: Moody's Brings Credit Ratings Onchain with Canton Network Integration
The U.S. Treasury leads the chain of action.
The choice to start with the iBoxx index is deliberate. S&P Dow Jones Indices and CAICO U.S. Treasury Bonds are becoming the “core layer” for onchain financial systems, reflecting their growing role as collateral and a key entry point for institutional activity.
Putting the index onchain allows financial institutions that build blockchain-based products to directly access the widely used treasury index without relying on traditional data feeds and licensing processes.
US Treasury yields already dominate the token market. According to industry data, more than $12.5 billion worth of Treasurys have been onchained more than any other asset class.
Related: BitGo Expands Canton Coin Services Through Business, Onchain Settlement
