Canton Ripple Stellar the chosen layer 1s for institutional

Added: 2026-05-14

[00:00:00]All right, everybody, what is going on?

[00:00:01]Welcome back to another Cypher X video banger. In today's video, I'm going to show you guys how important of a role Canton is playing in this age of transformation via this ongoing adoption of digital assets, digital wallets, AI agents, and the integration of traditional finance. Actually, I should say the merge of traditional finance over onto crypto and blockchain rails.

[00:00:19]As always, none of this is financial advice. Buckle up your seatbelt. This research is going to be a little extensive. I have some really great video clips to play for you guys today, all of which you're going to really surely enjoy. If you do, do us that favor. Smash that thumbs up button.

[00:00:31]Subscribe to the platform, as it does help this platform grow and reach more like-minded individuals like yourselves.

[00:00:37]With that being said, let's dive in.

[00:00:39]Let's tap into Nadine. She's a representative from the DTCC. Let's listen to what she has to say here. As always, show us. That's what makes life fun. Um, even with all the great things I talked about, I mean, there's a reality of implementation. If you look at all our member firms, uh, you look at any fund manager, right? Like, they've been There's a lot of legacy, uh, systems and infrastructure out there.

[00:01:00]So, we've, uh, we've been very thoughtful about that. There's a couple of things that we know to be true. Not everything will tokenize, right? And not everything will get tokenized at the same pace and rate. So, the old and the new have to coexist together, uh, for a long period of time. And this is where DTCC's mission has been to ensure that we treat the new assets with the same quality of care as we do with the old assets, right? So, true investor protection, corporate actions, proxy voting, all that good stuff. We also got to figure out how we facilitate, um, our clients and our participants to be able to merge the old and the new together.

[00:01:36]Um, and that's critical for risk management purposes, liquidity. If you fast forward a little bit, we do anticipate a world where, you know, today, I'm sure if I ask you, you have a brokerage account, you have a bank account, you've got a this account and that account. Um, in the future, you'll have one wallet that will host all that activity.

[00:01:52]That sounds simple, because when we try to explain a wallet to somebody, we say, "Yeah, it's like an account." But it really isn't, right? It's it's a lot of different things that are in the wallet.

[00:02:01]And all the systems down here, all the systems within middle and back offices, are all coded to run on accounts. And now suddenly we're going, "Ta-da!

[00:02:09]There's a new thing. It's it's a wallet." So, there's a lot of work that needs to be done by the industry to figure out how they can lean on these new rails, um, and and push forward. So, the, um, so that's going to alternate a lot of the trading models, the operating models, distribution models. So, what you're going to see is the, uh, uh, the confluence, if you will, of all asset classes, right? So, uh, you're going to see, uh, it's going to be really hard to distinguish anymore between crypto and traditional assets, right?

[00:02:40]Because we're using the same rails. And the work that people like us for financial market infrastructure, DTCC, is what pushing forward to building these rails. We're building that infrastructure. So, to use an end user, it shouldn't matter, right? It shouldn't matter what rails we use. What you want to know is your Boom! So, she just confirmed that they are building these new rails. And so, before we continue with today's video breakdown, because that was massive confirmation, where she talked about everything merging onto crypto rails. She said how everything's going to come together and it's going to be It's going to be very hard to determine the difference between crypto and traditional rails, because it's all going to blend together. I said, "Gold printed new all-time highs.

[00:03:21]The S&P 500 and Nasdaq pushed to record levels this year. Real estate, both in the US and globally, is sitting at the highest valuation in history." It's not random. That is capital positioning.

[00:03:30]Now, zoom out over the next few years, every one of these markets is moving on chain. Tokenization isn't a theory anymore. It's the direction institutions are building towards. And while all of that is happening, crypto is still being treated like it's early. It's still misunderstood. And it's still discounted. And that is where the opportunity sits. Institutions already understand the shift. They're not guessing. They're waiting. They're waiting on regulatory clarity, waiting on the green light to scale in. And once this happens, once regulation catches up, capital is not just going to trickle in. It is going to flood in, right? And so, you guys just heard confirmation from a representative directly from the DTCC confirm for a fact they are building out these rails. Huge confirmation. Now, if we come over here, we have the same representative. This is where Canton plays an important role.

[00:04:18]Where at the Ando Summit that took place this year, we heard her say that they are heavily focused on Canton and that so are their clients. That their clients requested Canton. Take a second here and listen.

[00:04:31]Private permissioned chains and public permissionless chains?

[00:04:33]>> I mean, it's it's really going to be trade-off between transparency and scalability versus privacy, um, and, uh, um, privacy and compliance.

[00:04:43]That That's at its fundamental core. Uh, but the reality is we're going to need a mix of all of it to to make it work. So, at DTCC, a lot of our infrastructure is built on Hyperledger Besu today, um, but we also support other L1s that are out there. Um, we have been very public with our relationship with Canton, for example, um, and we're also working with other L1s and L2 providers out there. The idea for DTCC is to have a, uh, a curated, uh, network of L1s, L2s, where we were overlaying orchestration layer on top.

[00:05:16]Um, and when I say, which is really driven by client demand. What took us to Canton was our clients told us, "We want We want to work on Canton and we will select layer layer the next one and next one, again, based on liquidity and where our clients want to go." So, that comment was not only super bullish for the entirety of the crypto ecosystem, at least layer ones that have real-world use case and utility and are purpose-driven, all all kinds of things, right? But but she mentioned that, of course, they're working and going to partner with other layer ones. That's the end goal. But she specifically highlighted Canton and she said, word for word, "That is what our clients wanted. We worked with Canton because that is what our clients demand." And that's not the first time someone with credentials has said that. That institutions, considering that this is the DTCC, you would assume that their clients are all institutional. And the DTCC has over 6,000 institutionally based clients, okay? Well, if we come over here, hinting at something similar and then also considering that we are entering into this digital era of AI agents and digital wallets, well, we have the CEO of Wallet Connect, Jess Halgrave.

[00:06:23]Hopefully I'm pronouncing her name correctly, where she said the same thing, that their institutional clients are demanding Canton. That's the network that they want to work with. Take a second and listen. Remember, paying attention to vocabulary is detail here.

[00:06:35]I'm not making this stuff up. This is not some illusion. This is coming from people with systemically important credentials and from some of the largest market participants in crypto, i.e., the CEO of Wallet Connect, saying these things. Listen to what she says here.

[00:06:48]I think this is this is extremely exciting. Um, Wallet Connect, at its heart, works with all different chain ecosystems, um, but a few times a year, we really prioritize chains that we think are going to be really instrumental in changing the landscape.

[00:07:02]Um, what that means is that we do work to make sure that Wallet Connect works seamlessly, that it's really easy for our wallets and custodians and easy for app builders to integrate with that chain. Um, and we see Canton really as one of the most exciting chains in the space at the moment. The work that they're doing on the institutional side around tokenized, uh, real-world assets, equities is incredibly exciting, not to mention, of course, kind of the the privacy aspect, which really delivers something very different to to the ecosystem. So, this this integration for us is is is really exciting. Um, as already mentioned, last year we launched a program called Custodian Certified.

[00:07:36]So, where Wallet Connect historically has had a very broad network of retail wallets. Um, also over the last few years, we've welcomed more and more institutional and custodian wallets to the network. People like Fireblocks, Hex Trust, BitGo, Anchorage. Um, and it's at these places that major institutions, hedge funds, and banks are storing their digital assets. And we were hearing a lot from those customers, "When are you going to do Canton?" Because that's what we're going to want to be using over the coming years. So, that's really the origin of of today's announcement.

[00:08:04]>> Tell me that doesn't sound exactly like what the and they've constantly been asking, 'When are you going to get Canton?

[00:08:14]Because that's the network that we're going to want to use over the coming years.'"

[00:08:18]Wow, right? So, as a retail investor who wants to position themselves where smart money's positioning themselves, when you hear things like that, again, it is my personal opinion, not financial advice, that we should not ignore those things. I know that for a fact I'm not, right? Because we're not institutions. We don't have large amounts of capital to move these markets. And if large amounts of capital are considering adding Canton to their portfolio over the coming years, it might not be doing it overnight like all these moon boys make it out to be. But if these institutional clients are interested in Canton, according to these representatives, they are, I want to be positioned on the right side of that market, you know, momentum, okay?

[00:08:57]So, I wanted to play those clips. And that all goes hand in hand with what Sandy Cole on stage from the Ando Summit that the DTCC representative was sitting at, talking about Canton and their relationship, where Sandy Cole went on to talk about AI agents and digital wallets. Take a second and listen. All through the ease of, uh, one app.

[00:09:15]Yeah, I would say that, you know, there's going to be no differential between banking, wealth management, asset management, personal investing.

[00:09:25]Um, each person's totality of their wealth is going to be represented in these wallets. And the advice layer that's going to be able to be brought into that and around that, the degree of personalization, as Cynthia says, that's going to be applicable to that. And the ability for every one of us to bring every asset we own into the portfolio and have it considered as part of our personal exposures, that's going to be commonplace. You're not even going to notice this. This is going to be handled by agents, by smart contracts. This is going to just be your portfolio in the way that it enables your life is going to be happening moment-to-moment in your life, and you're not even going to notice it because it's going to be so seamless and smooth. This is all going to be handled by wallets and agents, which leads me over to this groundbreaking announcement. The first private AI agent payment just settled on Canton network. Let that sink in. AI agents now moving toward identity, payments, privacy, and compliance on institutional grade rails. This is bigger than crypto. This is infrastructure for autonomous finance.

[00:10:31]Canton keeps quietly building where institutions will likely operate.

[00:10:36]And so, this was put out by Cantor. If we come over here to the official announcement, you guys can read thoroughly through the entirety of this.

[00:10:44]It was released just the other day, and I feel like it's going extremely overlooked considering the video clips that I'm going to share with you guys here in just a second. So, before we dive into my highlights, considering that this is, again, you can see it in the headline, on April 23rd, the world's first, I repeat, the world's first private blockchain transaction was executed by an AI agent settled on Canton network, marking a major milestone in the development of P402, a Canton native standard protocol for AI agents.

[00:11:15]Developed by Cambridge University researcher Yash Bhatia and funded through Cantor 8's official research program, the purpose of the P402 is to provide regulated institutions with access to the benefits of blockchain-based AI agents in a way that maintains confidentiality on sensitive information. We'll come back and we'll read thoroughly through the remaining portions of this, but >> [clears throat] >> let's listen to some other large market participants and industry-leading experts in the space confirm this narrative that we are entering into this era of digital wallets and AI agents.

[00:11:46]Right? If you think about, you know, the average question that we really big growth opportunity here, and we don't think it's necessarily more humans trading on blockchain, we think it's agents. Right? If you think about, you know, the average question that we were asked is, "How many agents do you think you're going to have?" Somewhere between three to five, some people say 10.

[00:11:59]People who use agents actually talk about hundreds of agents. Anyway, there's like six to seven billion people online. That means we're going to have 30 to 50, maybe 100 billion agents online. They're going to be trading, they're going to be doing something, they're going to be transacting. What are they going to transacting with?

[00:12:13]Blockchain-based assets, stablecoins, tokens, crypto, right? I mean, they can't be KYC'd, they don't have a bank account, they don't have a PayPal.

[00:12:20]They're going to basically just have a wallet uh where they're going to be trading with each other. We see this already happening today. And that is basically where we think the big growth opportunity will happen. So, it's going to be humans trading in the way that they are, but there's literally going to be tens of billions of new agents that are going to be coming into the world, basically powered by blockchain.

[00:12:35]Right? And these agents are going to be trading with each other, and they're going to require privacy, right?

[00:12:39]Especially these institutional agents, they're going to require privacy-enabled features. Now, coming over here, this is the president and COO of crypto.com. So, yet another industry-leading expert um you know, talking about AI agents. Take a second here and listen.

[00:12:56]First of all, I I would say that there's a there's been a fundamental shift on how people will interact or interface with any services in the future, whether it's for investment, whether it's for commerce, for travel, for health.

[00:13:11]The interface of the future is going to be an AI agent.

[00:13:15]And that's that's huge shift. It means maybe in the future there's no thousands of apps, there's just one app that you talk to every day. That is your AI agent, and maybe he has a bunch of sub AI agent helping him out, but that's going to be the interface of the future.

[00:13:34]So, as a business, you need to think, how do you prepare for that, and how do you benefit from it, right?

[00:13:39]And I think the first thing you need to do is make sure your suite of products can talk to an agent. If we look at a professional venue, you already have some APIs and things like that, but it's not already the case on maybe your retail platform or some other product that you're offering. So, the first thing we did when we saw that that trend coming up is make everything accessible through API, right?

[00:14:03]In a safe and secure way. That's very important, especially in the space of AI agents.

[00:14:08]And the second is, how do you explain to the AI agent how to use the those APIs and understand natural language to to process orders. And so, then you have to build skills. So, we build the skills file for the AI agents to be able to use those APIs. I think our skill is like top three trending in the industry.

[00:14:28]So, again, he's just confirming the narrative and what I reposted this is that MasterCard, right? Partnered with Lobster Cash to let AI agents make secure payments using existing cardholders, right?

[00:14:41]And if we come over here, we know that sitting in the background, MasterCard picked a bunch of crypto-native companies, 85, I believe, to be exact, for an invitation only to join MasterCard's crypto partner program, and Canton was one of those participants, right? And we see MasterCard fully embedded into the AI agent niche, and we've now heard very important people say that AI agents are going to be a part of the future. From Sandi Coin to the COO of crypto.com, these are not just random people. These are people when when they speak, you should be paying attention to. We should be paying attention to these things, right? Again, to each his own. I'm here to show you guys the research that Canton is one of those players out of the multitudes of other layer ones that are going to likely survive in the future that should be paid attention to.

[00:15:31]Not financial advice, right? Coming back over here to thoroughly read through the remaining portions of these highlights, it says here, the transition, or excuse me, transaction is momentous. This transaction that happened, right?

[00:15:45]>> [clears throat] >> Where the world's first private blockchain transaction executed by an AI agent settled on Canton network is so momentous because until now, every meaningful attempt to establish blockchain rails for AI agents has taken place on fully public blockchains. This might be fine for retail users executing small transactions, but the uncompromising transparency is wholly unsuited for institutional participants for whom confidentiality around sensitive transaction data is non-negotiable, right? And so, now this is all readily available. Not only does this provide a way for one agent to prove to another who it represents, what it is allowed to do, and how it gets paid, did you guys hear what the guy from crypto.com said, right? Remember, we go back.

[00:16:29]And I think the first thing you need to do is make sure your suite of products can talk to an agent. If we look at a professional venue, you already have some APIs and things like that, but it's not already the case on maybe your retail platform or some other product that you're offering. So, the first thing we did when we saw that that trend coming up is make everything accessible through API, right?

[00:16:53]In a safe and secure way. That's very important, especially in the space of AI agents.

[00:16:58]And the second is, how do you explain to the AI agent how to use the those APIs and understand natural language to to process orders. And so, then you have to build skills. So, we build the skills file for the AI agents to be able to use those APIs. I think our skill is like top three trending in the industry. And so, people are actually agents also are actually using it.

[00:17:22]>> [clears throat] >> Right? You have to be able to prove how these agents can transact with other agents, right? And this just happened.

[00:17:30]This is crazy that this all just happened for the first time on Canton in a private fashion, right? Where these transactions are private.

[00:17:40]It also ensures that agent actions and their beneficiaries maintain privacy over their activity while still able to share necessary data with regulators and compliance officers when required through a complete audit trail. This is something that is simply not possible on other public blockchain rails, where many pre-existing AI agents already operate because there's that argument that, "Oh, this is nothing new," right?

[00:18:02]AI agents are on other chains as well, but they're not private privacy-enabled AI agents, okay? Regulated sectors and institutions cannot afford to risk leaked positions, front-run trades, and exposed counterparties. And this innovation on Canton allows for the use of AI agents to become a meaningful option for institutional participants who require strict confidentiality of their activity. Right?

[00:18:25]So, again, this all just happened the other day.

[00:18:28]Last but not least, it says, "What is missing is a common identity layer, the equivalent of the SSL for agents. That standardize coordination across platforms. While there are prominent attempts to solve this today, those approaches are fragmented. There is still no broadly adopted interoperable way for one agent to prove to another who it represents, what it's allowed to do, and how it gets paid." However, through the P402's complete registry suite, AI agents will soon have a trusted system by which they can showcase their capabilities, build trust, and demonstrate track records, along with clarifying terms and payment agreements. So, this is all happening for the first time. Was just recently announced, and I hope that after sharing these fundamentals in the video clips from these systemically important organizations and large companies that are embedded into the crypto ecosystem shows you guys that this is, for a fact, stuff that we should be paying attention to. As always, we're just here in an attempt to show you guys some of the best research in the game. Many blessings to you guys, and remember, none of this is financial advice. I'm not telling you guys to go out there and buy the digital asset Canton coin. Do what you want with your own personal investments. I know where it is that I'm situating my money at, and what digital assets and layer ones I'm investing in, and Canton, personally, is one of those assets that I have exposure to. I need that to be transparent and to be known, but as always, do your own personal research. I cannot stress enough, always assess your own personal risk properly, and just go out there, and if you don't know where to find any of this research at, all these video clips, all these fundamental reports, all these things are constantly shared inside our private Cypher Rex Discord. Our researchers are always dropping the best of gems, all the panel discussions that nobody pays attention to, that nobody watches. We'd love to have you on the team. Head over to cypherrextrading.com, tap in with our private community. Our research team is always up-to-date with all the great information that everybody should be watching, but nobody for some odd reason ever does. With that being said, hope to see you guys on the inside. If you liked and enjoyed this video breakdown, smash that thumbs up button. If you're a long-term believer in Canton, do us that favor, subscribe to the platform as we will constantly cover Canton-related fundamentals in the long-term here on Cypher Rex along with many other layer one developments taking place in the crypto ecosystem. Many blessings to you guys, as always, be cognizant, be aware out there, and I'll see you all in the next video breakdown.