Backers of the Canton Network are in advanced talks to raise roughly US$500 million for a special-purpose acquisition vehicle (SPAC) that will hold and manage a treasury of the network’s native token, according to multiple reports citing Bloomberg. The effort is being spearheaded by trading-firm DRW Holdings and venture group Liberty City Ventures and marks a major bet on “digital-asset-treasury” structures inside institutional-grade blockchain infrastructure.
What’s being planned
- The vehicle will be a SPAC or listed holding company that acquires, holds and develops the token ecosystem of the Canton Network.
- DRW and Liberty City are expected to contribute a significant portion of the capital in the form of the native token (Canton Coin, or “CC”), with external investors making up the remainder of the US$500 million target.
- The listed entity will act not only as a treasury but as a “super-validator” and ecosystem builder, supporting infrastructure, applications and token utility development on the Canton Network.
- Institutional custody and infrastructure layers are already in place: for example, BitGo is reported as a qualified custodian offering insured cold-storage for CC tokens — adding a layer of investor-grade credibility.
Why this matters
- Hybrid token-treasury models gaining traction: The proposed vehicle mirrors the “digital-asset treasury” (DAT) model where public vehicles hold large amounts of crypto assets and offer investors regulated stock-market exposure to crypto infrastructure — similar to how some companies hold Bitcoin or other tokens on their balance sheet.
- Institutional upgrade for blockchain infrastructure: The Canton Network is built as an institutional-grade, privacy-enabled blockchain for financial markets, involving major banks and financial-market infrastructure providers. Aligning a publicly listed treasury with that network signals confidence in the underlying infrastructure.
- Massive raise underscores investor appetite: Targeting US$500 million is a large amount for a token-treasury SPAC, indicating that the backers believe institutional investors may assign meaningful value to token-based infrastructure holdings beyond traditional crypto holdings.
- Regulation and listing interplay: Because the vehicle is expected to list on a public exchange, it will need disclosure, governance and audit standards similar to other listed entities — which may help narrow the gap between crypto-native and traditional finance (TradFi) models.
Risks & things to consider
- Token-listing and liquidity risk: Canton Coin is not yet widely listed on major exchanges; liquidity and price discovery may remain limited, raising valuation uncertainty.
- Token-economics and governance structure: How the token is distributed, how much supply the treasury holds, how issuance and inflation are managed7 will affect value capture by the listed entity — and investor returns.
- Regulatory headwinds: A publicly listed entity heavily exposed to crypto tokens faces regulatory risks around token classification, securities law, disclosure and compliance. This is especially relevant in the U.S. and other regulated jurisdictions.
- Execution risk: Building token infrastructure, validating nodes, launching application ecosystems and generating network activity takes time; markets may expect faster returns than infrastructure rollouts deliver.
- Valuation multiples: Betting on a network infrastructure token’s value is high-beta; institutional6 investors might require high discipline, auditability and governance transparency before committing large capital.
What to watch next
- SPAC filing details: Monitor when the backing vehicle files a registration statement (Form S-1) or equivalent, including token distribution, supply-cap, governance, and use-of-proceeds disclosures.
- Token listing announcements: When and where Canton Coin will be listed for trading externally, which impacts price discovery and liquidity.
- Custody & audit announcements: Institutional custody arrangements (like BitGo) will matter; look for audit/historical proof of token holdings and value.
- Network activity metrics: Growth indicators such as number of validators, transaction volume, on-chain token holders, partner institutions participating in the Canton Network.
- Competitive positioning: Similar digital-asset treasury companies (Bitcoin-treasury firms, token infrastructure treasuries) will provide context on how the market values such vehicles.
Bottom line
The proposed US$500 million SPAC-style fundraising for the Canton Network — backed by DRW Holdings and Liberty City Ventures — is a bold step in bridging institutional finance and crypto-infrastructure tokens. It represents a belief that tokens tied to regulated-grade blockchain networks can generate substantial8 value beyond simple “buy-and-hold” strategies. Still, success hinges on token-economics, regulatory clarity and execution. If it works, it could open a new class of institutional-grade token-treasury companies that hold infrastructure tokens, not just store-of-value tokens.
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