The ongoing cryptocurrency market sell-off is forcing a fundamental reckoning within the industry, shifting focus towards blockchains with tangible business models that deliver value directly to token holders and users, according to Yuval Rooz, co-founder and CEO of Digital Asset, the creator of the Canton Network.
Rooz, in an exclusive interview, stated he is not concerned about the market turbulence, which he views as a necessary correction away from speculative narratives he describes as "empty shells." He emphasized that his core institutional customer base remains engaged. As evidence of this shift, he pointed to the performance of the Canton Network's cryptocurrency (CC), which rose 25% in the past month, and derivatives exchange Hyperliquid (HYPE), which surged 28%.
Architecture and token design are becoming critical differentiators for institutions. Rooz highlighted the inherent flaws in relying on bridges for interoperability between public blockchains, noting they are frequent hacker targets and draw regulatory scrutiny for obscuring transaction flows. Blockchain security firm Elliptic estimated at least $21.8 billion in illicit or high-risk crypto flowed through such infrastructure in 2025.
Rooz argued that institutional clients like the Depository Trust & Clearing Corporation (DTCC) and Euroclear require a trifecta of privacy, interoperability without bridges, and predictable costs—something he claims general-purpose public chains cannot offer. This need is driving interest in privacy-enabled, institutional-grade networks like Canton.
Despite this, major asset managers are already active on public chains. BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) launched on Ethereum in 2024, and Franklin Templeton has tokenized a money market fund on Polygon and Stellar. Banks are also adopting a hybrid approach; JPMorgan deployed JPM Coin on Coinbase's Base network and announced plans to bring its USD JPM Coin (JPMD) natively to the Canton Network in 2026.
A direct comparison with Hedera (HBAR) underscores Canton's perceived advantages. Market analyst ElonTrades notes that while Hedera has achieved credible enterprise milestones—including a governance council with Google and IBM, and pilots with Lloyds Banking Group—its economic structure may limit long-term value accrual to the HBAR token. Hedera's fees are priced in USD and converted to HBAR at execution, which provides cost stability for enterprises but does not create proportional token demand. Furthermore, its large 50 billion token supply and ongoing treasury distributions lack scarcity mechanisms.
In contrast, Canton's architecture was built with privacy-centric, regulated financial workflows in mind from day one. Its network economics feature burn and mint mechanics that trend toward deflation. Canton's institutional alignment, connecting to DTCC, Goldman Sachs, JPMorgan, BNP Paribas, and Nasdaq, is seen as a stronger foundation for anchoring future capital markets activity compared to Hedera's model.
