Canton Network's Design Seen as Guard Against State-Sponsored Hacks, Says Digital Asset CEO
RWA Signal Insight
InfrastructureDigital Asset CEO Yuval Rooz highlights that financial institutions are increasingly prioritizing security against state-sponsored hacking groups, particularly those linked to North Korea, which have stolen over $6 billion since 2017. The April 2026 Kelp DAO exploit, resulting in a $290 million loss, underscored the vulnerability of DeFi protocols to sophisticated, multi-month infiltration campaigns. In response, the DeFi United initiative successfully raised 132,650 ETH, valued at approximately $303 million, to mitigate losses for affected users. Rooz argues that the Canton Network, a public, permissioned blockchain launched in 2024, offers a superior architecture for institutions by allowing participants to implement specific guardrails on subnets and assets. This design aims to prevent illicit actors from operating within the network, addressing the fiduciary obligations of traditional financial entities. The discourse surrounding these security measures reflects a broader tension between the permissionless ethos of DeFi and the necessity of safety parameters for institutional adoption. Ultimately, Rooz suggests that the ability to restrict bad actors is transitioning from a controversial design choice to an essential baseline requirement for the future of RWA and institutional blockchain infrastructure.
Key points
- North Korean-linked groups have stolen over $6 billion in crypto assets since 2017.
- DeFi United raised 132,650 ETH to cover losses from the $290 million Kelp DAO exploit.
- Canton Network allows participants to implement custom guardrails to block illicit actors.
- Institutional adoption requires safety parameters that conflict with traditional permissionless DeFi principles.
Background
Canton Network is a public, permissioned blockchain infrastructure designed to connect institutional financial systems. It utilizes the Daml smart contract language to enable interoperability between different financial applications while maintaining strict control over data privacy and regulatory compliance. The network allows institutions to issue and trade tokenized assets across subnets while retaining the ability to enforce governance and security protocols.