RedStone secures Canton grant for private institutional pricing

RedStone has secured approval for a 15,775,000 Canton Coin grant to develop CAPS, a private institutional pricing standard with a baseline funding value of roughly $1.83 million.

Summary

• Canton's grant funds a 12-month program, with half the payments tied to demonstrated adoption.
• CAPS would let institutions share reference prices while keeping negotiated transaction terms private.
• Zenith and Memora are the first design partners, with integrations still in development.
• A public standards draft and reference implementation preceded RedStone's Oct. 29 announcement.

RedStone's Oct. 29 announcement identifies Zenith and Memora as initial design partners for the Canton Access and Privacy Standard, which remains in development. The company dates the unanimous funding decision to Sep. 16 and describes a 12-month delivery program.

In its accompanying X post, RedStone illustrates the proposed arrangement through a repo transaction between two banks. An oracle supplies a $100 reference price for collateral, while the banks privately agree to value it at $98. The negotiated figure stays between the counterparties.

Two banks settle a repo on @CantonNetwork. RedStone prices the collateral at $100. The banks agree on $98.

Who should know about the $98? Only the two banks.

That's the idea behind CAPS, and the Canton Development Fund has unanimously approved RedStone's proposal to build it. pic.twitter.com/roN9nva440 --- RedStone ♦️ (@redstone_defi) October 29, 2026

The example separates the price supplied by the oracle from the terms agreed by the institutions using it. Both banks begin with the same reference, but the provider does not receive their private valuation or learn their positions through that calculation.

Half the Canton funding depends on adoption

The public grant record sets out eight milestones, dividing payment equally between engineering work and demonstrated network adoption. RedStone revised the payout structure during the review process, with a Sep. 9 comment explaining the change.

By month six, one adoption milestone calls for at least 20 active Zenith mainnet feeds and 10,000 successful price updates over 30 consecutive days. Its acceptance conditions require onchain records, alongside evidence of collateral-pricing use by ecosystem partners.

A separate month-eight target requires more than $1 million in liquidity bridged through Memora from Solana, Stellar, or Base, with at least 100 distinct bridging events. The schedule ties another payment to $1 million in monthly trading volume that depends on CAPS.

Final acceptance includes an external security audit, remediation, and institutional usage evidence. The grant record permits private confirmation to the committee where compliance requirements prevent public transaction disclosure.

RedStone's announcement places the grant's baseline value at approximately $1.83 million and says milestone payments use a seven-day average CC price. It identifies the figure as a funding baseline, separate from the token's current market valuation.

RedStone CAPS already has a public standards draft

A standards draft appeared in Canton's public repository on Oct. 26, before the announcement. The submission remains labeled Draft and uses the temporary alias cip-redstone-caps while awaiting an assigned proposal number.

Its description specifies Daml interfaces for publishing, distributing, and verifying oracle data, with reference fixings recorded on the ledger. It describes consumption of that data as invisible to the oracle operator.

The submission distinguishes the license for the proposal text, CC0-1.0, from the Apache-2.0 license for code. It links to a public reference implementation containing interfaces, templates, verification components, tests, and documentation.

According to the implementation documentation, data arrives in numbered rounds, with each round carrying a price-free record and a separate capsule containing the data. Licensed distributors can create capsules restricted to their own clients.

Consumers check both authenticity and consistency with the recorded round through their own participant. The documentation separately identifies freshness, licensing, and the round's signatories among the checks an application should perform.

The implementation builds on the Canton Data Standard's PublishedDataPoint interface. Its documentation says an application already written for that interface can read a CAPS capsule without changing its consumer interface.

A provider joins by implementing a verifier for its own signing and aggregation scheme, according to the repository. The codebase includes a RedStone-specific verifier alongside the generic framework. Its documented tests cover publication failures, sublicensing, revocation, visibility and verification against signed payloads, among other behaviors.

Institutional partners plan reserve and pricing applications

Memora plans to use CAPS for reserve attestations, while Zenith's integration addresses pricing consumed by applications, RedStone said. Temple Digital Group plans to test the framework during its rollout.

Viv Diwakar, head of the Canton Foundation, described the intended result as a "shared privacy and licensing framework that enables multiple data providers to serve the network" in the announcement.

RedStone's earlier deployments include a dedicated Stellar price oracle announced in March, as previously reported by crypto.news. The deployment supported configurable data feeds for applications using external asset prices.

In August, reporting on Stellar's tokenized asset market cited RedStone data placing its RWA value above $3 billion, compared with slightly more than $2 million in RWA-enabled Blend pools. RedStone's work there included standardized pricing for tokenized Treasury, credit and fund products.

DTCC brings live U.S. securities infrastructure to Canton

DTCC launched its tokenization service on Oct. 28, with Canton and its private Besu network as the initial integrations. Its announcement names 20 DTC participants that signed access agreements, including Bank of America, JPMorgan, Fidelity Investments, and State Street.

The service allows eligible users to create tokenized representations of securities held at DTC and convert between traditional and tokenized forms. DTCC says the representations preserve ownership rights, investor protections and economic entitlements.

DTC holds more than $114 trillion in custody, according to the announcement. The figure describes the custody business, not assets already tokenized through the service. DTCC developed the platform with input from more than 150 firms and plans further network integrations in 2027.