CIP-0131: Add CapConnect+ (CC+) as a Super Validator (Max Weight 5)
Contents13 sections
Abstract
CapConnect+ (CC+) is built to simplify and modernize the issuance and settlement of primary Commercial Paper (CP) transactions, with a view toward expanding the product set to Tap Issuances (TAPs), Medium Term Notes (MTNs), and other financial instruments.
As a Super Validator on the Canton Network, CC+ will onboard large publicly traded corporate CP issuers, their institutional investors and dealer counterparties, committing high-volume, large-notional transactions to the Canton Network. CC+ proposes a maximum reward weight of 5, released through escrow as milestones are achieved.
CC+ will initially work with a top-tier corporate CP issuer, one of the largest in the United States, to bring corporate Commercial Paper onto the Canton Network through a structured, phased implementation, culminating in full atomic settlement in which both the CP instrument and the cash leg settle on Canton via DiSH and/or compatible on-chain cash infrastructure.
About CapConnect+
CapConnect+ is a capital markets FinTech platform developed in collaboration with Walmart to connect corporate fixed-income issuers and institutional investors directly in the fixed-income primary market. While initially focused on the Commercial Paper market, the platform is designed to scale across MTNs and other primary market instruments, along with introducing solutions to day-to-day corporate treasury operations.
Since entering full production in early 2025, CapConnect+ has facilitated more than $46.11B in CP issuance for leading corporate issuers with an average ticket size of $125 million. Transaction sizes range from $1 million (test issuance) to $1.499 billion (single transaction). The platform is operational today, processing issuances through existing settlement infrastructure while building the Canton-native settlement layer described in this proposal.
CC+ is led by professionals with executive experience across US equities and fixed-income market structure, brokerage, asset management and corporate treasury. All of CC+’s issuing clients are large publicly traded corporations. All asset management clients are large institutional managers. All counterparties meet the Qualified Institutional Buyer (QIB) definition under Rule 144A. Client names are available to the Canton board under NDA upon request.
CC+'s current client base spans corporate issuers, institutional investors, and primary dealers, and reflects the depth of institutional relationships CC+ brings to the Canton Network. At a category level, CC+'s participants include:
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Issuing clients: Among the largest corporate CP programs in the United States, spanning Fortune 50 and Fortune 500 technology, industrial, and healthcare companies
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Institutional investor clients: State and municipal treasury programs and leading institutional asset managers, including bulge-bracket firms and registered investment advisers
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Dealer network: Primary dealers, including a recently added bulge-bracket primary dealer
CC+ is fully SOC 2 Type II compliant. Annual third-party audits are conducted, and audit reports are available to the Canton governance board upon request.
Motivation
One of the top corporate commercial paper issuers in the United States has mandated CC+ to find a blockchain-based solution that would settle assets in near real time, and has offered to work with CC+ on real-money pilot transactions. This is a live, funded institutional mandate from a named counterparty whose board members bear fiduciary obligations.
By partnering with Canton, our goal is to deliver atomic, real-time settlement through asset tokenization and digital cash. CC+'s proposed implementation targets full dual-leg settlement on Canton: both the tokenized CP instrument and the corresponding cash payment will settle on-chain, achieving full delivery-versus-payment (DvP) atomicity, with both the instrument and cash legs settling on-chain instead of only one. This is an institutional-scale use case for blockchain, backed by some of the world's largest commercial paper market participants who have committed real capital to live pilots.
CC+ is unique within the Canton Network in its product mix, client mix, and the size of transactions it will bring to the network. This partnership introduces the largest US corporations and their treasury departments to Canton, a demographic and transaction profile that does not currently exist on the network.
Proposed Weight Justification
CC+ proposes a maximum weight of 5, with milestone-based weights structured around cumulative network contribution rather than individual client identity. The weight justification is as follows:
CC+ operates in a $14 trillion annual issuance commercial paper market. The $1B, $5B, and $10B cumulative notional milestones each represent a progressively material contribution to Canton Network traffic and coin burn, while remaining a small fraction of CC+'s addressable market. A volume-based milestone structure rewards durable, scalable network contribution rather than the onboarding of specific named participants. CC+’s anchor issuing client is responsible for approximately 10% of total domestic CP issuance. A single issuer’s program is capable of generating billions in on-chain notional per year.
The platform is already in production, having facilitated $46.11 billion in volume to date.
Proposal
Approve CapConnect+ as a Super Validator with max weight 5, governed under the standard SV framework. Reward weight will be released from escrow in milestone-based tranches as defined below.
Milestone Summary
| Category | Milestones | Weight |
|---|---|---|
| Platform Development (Production Atomic Settlement & First Trades) | 1 | 1 |
| Client Adoption (Tier 1 + Tier 2) | 1 | 1 |
| Transaction Volume / Notional | 3 | 3 |
| Total | 5 | 5 |
The proposal seeks a total reward weight of 5 across 5 milestones.
SV Commitment
| Deliverable | Acceptance Criteria | Deadline | Weight Earned | # of Settlement Events |
|---|---|---|---|---|
| Production Atomic Settlement & First Trades | Connect UAT infrastructure to cash leg infrastructure on Canton. Run end-to-end test issuances in which both the tokenized CP instrument and the corresponding cash payment settle on Canton (full DvP atomicity). CapConnect+ platform is live in production. Execute first production atomic settlement with a minimum aggregate notional of $100 million, with both CP and cash legs settling on-chain. Intention to roll and issue new CP multiple times in gradually increasing size. Client legal and CISO sign-off obtained prior to production execution. | SV approval + 6 months | 1 | — |
| Phase 1 Client Adoption | Onboard a minimum of 2 US corporate CP market participants to production on Canton (for example: 1 issuer and 1 institutional asset manager or dealer). Each onboarded participant completes at least one production atomic settlement transaction on Canton. | SV approval + 9 months | 1 | — |
| Notional Volume: $1B | Cumulative notional value of commercial paper issued and settled on the Canton Network reaches $1B. Measured as aggregate face value of all CP issuances with on-chain settlement finality in which both CP and cash legs settle on Canton. | SV approval + 9 months | 1 | 30 |
| Notional Volume: $5B | Cumulative notional value of commercial paper issued and settled on the Canton Network reaches $5B, across at least 120 on-chain settlement events (the CP leg and the cash leg of each issuance counted separately). Measured on the same basis as the $1B milestone: both CP and cash legs on Canton, with settlement-event count measured over the same period. | SV approval + 12 months | 1 | 120 |
| Notional Volume: $10B | Cumulative notional value of commercial paper issued and settled on the Canton Network reaches at least $10B, across at least 200 on-chain settlement events (CP and cash legs counted separately). Measured on the same basis as prior volume milestones: both CP and cash legs on Canton, with on-chain settlement finality and settlement-event count measured over the same period. | SV approval + 18 months | 1 | 200 |
Settlement-event counts include both legs of each issuance: the CP leg and the cash leg are counted separately. For the $1B milestone, weight is earned based on cumulative notional alone, and the settlement-event count shown is informational. For the $5B and $10B milestones, both cumulative notional and settlement-event count must be satisfied to earn the associated weight.
Sustainment Requirement
For each of the $5B and $10B milestones, for 12 months after it is achieved, CC+ will maintain a monthly pace of on-chain settlement volume of no less than one-third of that milestone’s Reference Pace (the milestone’s cumulative notional divided by the number of months elapsed between SV approval and the date that milestone was achieved). A sustainment shortfall occurs if monthly on-chain settlement volume falls below one-third of Reference Pace for four consecutive months. A sustainment shortfall will be reported to the Canton governance board, which may recommend a corresponding reduction in the weight earned for the affected milestone until the shortfall is cured; a shortfall is cured once monthly on-chain settlement volume returns to or above one-third of Reference Pace for two consecutive months.
Governance and Locking
CC+ believes it is in its best interest to actively participate in the governance of the Canton Network. CC+ intends to engage in governance cycles, working group contributions, and institutional advocacy as part of its participation in the Canton ecosystem. CC+ acknowledges and accepts the locking requirements under CIP-0105.
Total Addressable Market and Regulatory Context
The Corporate Commercial Paper market exceeds $14 trillion in annual issuance. As a short-duration instrument issued exclusively to institutional buyers, CP qualifies for the Section 3(a)(3) exemption from SEC registration and is distributed under Rule 144A to Qualified Institutional Buyers (QIBs). This established legal framework provides a sound regulatory foundation for tokenization, as tokenization does not alter the nature of the underlying instrument or the exemption analysis.
CC+’s anchor issuing client, among the largest corporate CP issuers in the United States, has formally committed to a pilot program for tokenized CP issuance and atomic settlement on the Canton Network. This client is responsible for approximately 10% of total domestic CP issuance.
For the avoidance of doubt, CC+ is not creating or facilitating digitally native assets. CC+ is tokenizing existing CP programs to leverage the efficiencies of DLT and atomic settlement. The tokenization layer functions as a settlement and record-keeping mechanism, preserving the Section 3(a)(3) exemption and QIB distribution requirements. CC+'s target implementation achieves full delivery-versus-payment atomicity, with both the CP instrument and the cash consideration settling on Canton. A formal legal memorandum on this analysis will be delivered to the Canton governance board, reviewed by outside counsel with established expertise in US securities law and digital asset regulation.
Given CC+’s deep relationships within the US corporate treasury space, we expect to broaden our use case set on the Canton Network beyond commercial paper to other opportunities including intercompany remittances and FX.
Expected Network Contribution
Every CP transaction settled atomically on Canton generates sequencer traffic on the Global Synchronizer, which in turn generates Canton Coin burn. Because CC+'s implementation targets full on-chain settlement of both the CP instrument and the cash payment on-chain, each transaction generates two settlement events on Canton rather than one, doubling the sequencer traffic and burn contribution relative to a single-leg implementation of equivalent notional. The CP market’s characteristics (high frequency of issuance, large notional sizes, and short maturities requiring frequent rollover) mean that even a small share of the market produces a high volume of on-chain transactions relative to other asset classes.
As CC+ scales from the initial pilot to $1B, $5B, and $10B in cumulative notional, the corresponding burn contribution will grow proportionally. CC+ will track and report on the transaction activity and associated burn attributable to onboarded entities.
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
Changelog
- Created: 2026-07-01
- Proposed: 2026-11-10