Consensys launches stack to link institutional ledgers
Consensys launched a four-workflow stack for routing institutional transactions across independent ledgers, keeping assets on native networks as EVM connections open.
The Blocktape Editors 2 min read 00741c
Consensys introduced Sovereign Network Interoperability on Nov. 2, a stack for routing transactions across independently operated institutional ledgers and covering four financial workflows, according to the Consensys announcement. The company says assets remain on their native ledgers while cross-ledger activity is verified cryptographically, allowing institutions to connect without transferring assets through bridges.
How does the stack coordinate transactions across ledgers?
An institution specifies a transaction, approved counterparties and settlement requirements; the stack selects an eligible route, coordinates execution and tracks the result, Consensys said. Its Cross Ledger Interoperability Protocol, or CLIP, is the core protocol, and the company says it draws on its zero-knowledge proof research.
Consensys says the product will support the Ethereum Economic Zone standard, Inter-Blockchain Communication and other protocols. EVM-based networks are available now, while Canton connectivity is planned, according to the company’s product Q&A.
Which financial workflows does the launch cover?
The four are collateral mobility, securities settlement, wholesale and cross-currency payments, and funds and asset servicing. The The Block report on the launch also describes the product as supporting settlement across independently operated networks while institutions retain control of their ledgers.
In the examples Consensys gave, the stack can coordinate delivery of a tokenized security on one ledger against payment on another, or connect bank currency ledgers for foreign-exchange transactions. It can also connect fund and banking platforms to move cash into tokenized money market funds and back.
What happens after the launch?
Consensys says institutions with existing networks can start with one supported connection. It plans to maintain adapters, software releases, compatibility testing and security fixes; the company also says institutions can operate the product themselves, use a financial market infrastructure or choose Consensys-managed services.
The company says Canton connectivity is next on its roadmap. Pricing will be scoped to the services and responsibilities an institution requires, according to Consensys.
Source material
- Consensys announcement — consensys.com
- The Block report on the launch — theblock.co