Introduction

Introduction

Denote Capital is building the protocol for ETFs implemented using distributed ledger technology (DLT) and backed by tokenized collateral such as treasuries, equities and bonds. These ETFs operate natively onchain: their underlying assets and management is fully onchain, transparent, and interoperable with other DLT applications.

The protocol is built around 2 key products: tokenized collateral and tokenized ETFs.

Tokenized Collateral

A scalable regulatory compliant solution connecting custodian banks with privacy preserving distributed ledger technology. Tokenized collateral enables direct onchain access to treasuries, equities, and bonds with instant settlement. This solution serves as the core building block for Denote ETFs and other DLT financial innovations.

Tokenized Collateral

Tokenized ETF

ETF issuance, redemption, and settlement workflows implemented in Digital Asset Modeling Language (DAML). Using Canton's interoperability and Denote protocol, institutional stakeholders use directly custodied securities (not SPV wrappers) for institutional-scale asset management onchain.

Tokenized ETF

Built on Canton Network

The Canton Network is a public, privacy-enabled blockchain network built for regulated finance. It connects many separated ledgers through a shared synchronization layer, enabling the creation of atomic, cross institution workflows while keeping sensitive data private.

The DAML smart contract language enforces fine-grained permissions on who can see and change each contract. This makes it possible to tokenize real-world assets (treasuries, equities, bonds) with the infrastructure and privacy controls that regulated markets require.

Technology

Key Stakeholders

Central Securities Depositories (CSDs), custodians, banks, reference index providers, and buy-side firms atomically coordinate operations on Canton Network such as Delivery versus Payment (DvP). ETFs managed on Denote can later be bridged to public chains such as Ethereum for broader distribution and composability with DeFi.

Ecosystem Stakeholders