CIP-TBD: Add CapConnect+ (CC+) as a Super Validator (Max Weight 5)
CIP: [TBD]
Title: Add CapConnect+ (CC+) as a Super Validator (Max Weight 5)
Author: Kostas Dafoulas
Status: Draft
Type: Governance
Created: July 1, 2026
License: CC0-1.0: Creative Commons CC0 1.0 Universal
Abstract
CapConnect+ (CC+) is focused on streamlining the process of issuing and settling 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 phased Crawl, Walk, Run approach culminating in full atomic settlement via DiSH and/or other on chain settlement options.
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 $35B in CP issuance for leading corporate issuers with an average ticket size of $200 million. Transaction sizes range from $1 million (test issuance) to $1.499 billion (single transaction). Despite this volume, the industry still relies on decades-old settlement infrastructure that is slow, expensive, and error-prone. As a short-term, private placement instrument, CP is well suited to modernization through blockchain-based settlement.
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+ is fully SOC 2 Type II compliant. Annual third-party audits are conducted, and audit reports are available to the Canton governance committee 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 to near real time and has offered to work with us on real money pilot transactions. This represents a live, funded institutional mandate from a named counterparty whose board members bear fiduciary obligations, not a speculative or exploratory engagement.
By partnering with Canton, our goal is to deliver atomic, real-time settlement through asset tokenization and digital cash. This is a unique, institutional-scale use case for blockchain, backed by the world’s largest commercial paper market participants who have committed real capital to live pilots.
CC+ is unique in the Canton Network in both its product mix, client mix, and the size of transactions it will bring to the network. With this partnership, we are introducing 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, based on the following:
CC+ operates in a $14 trillion annual issuance commercial paper market. The $1B and $5B notional milestones represent a small fraction of addressable volume, but a material contribution to Canton Network traffic and burn.
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 with $35B+ in facilitated volume. This is not a concept application. The infrastructure exists and is operational today.
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 (Crawl / Walk / Run)
3
1
Client Adoption (Tier 1 + Tier 2)
2
2
Transaction Volume / Notional
2
2
Total
7
5
The proposal seeks a total reward weight of 5 across 7 milestones.
SV Commitment
Deliverable
Acceptance Criteria
Deadline
Weight Earned
MVP (Crawl Phase)
Connectivity to Canton TestNet allowing issuers, investors, and dealers to see progression of test transactions from initiation through tokenization, smart contract creation, and settlement.
Mirror record on Canton; issuance and settlement via conventional rails.
Initiate relationships with wallet providers and custodians.
SV approval + 3 months
0
Interoperability (Walk Phase)
Use Canton TestNet/UAT to create mirror records. Deploy smart contracts to issue settlement instructions to dealers; continue to settle conventionally.
Smart contract terms match conventional issuance terms across all test transactions with zero material discrepancies.
Independent smart contract audit completed prior to progression.
SV approval + 6 months
0
E2E Atomic Settlement (Run Phase)
Connect UAT infrastructure to cash leg infrastructure. Run end-to-end test issuances including dollar settlement through entire TestNet infrastructure.
CapConnect+ platform is live in production: Execute first production atomic settlement: tokenize CP, create smart contract, settle smallest practicable notional through the full production cycle with the intention to roll and issue new commercial paper multiple times in gradually increasing size.
Client Legal and CISO sign-off obtained prior to production execution.
SV approval + 9 months
0.5
0.5
Phase 1 Client Adoption
Onboard up to 2 US corporate CP market participants to production (For example: 1 issuer and 1 institutional asset manager). Complete one production bilateral atomic settlement on Canton as first proof of concept.
Q4 2026 (Onboard 1st clients)
1
Phase 2 Client Adoption
Onboard additional institutional participants (mid-cap issuers, dealers, or institutional investors) to production on Canton.
Minimum of 2 additional participants beyond Tier 1, each with at least one production transaction.
Q2 2027
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.
Q3 2027
1
Notional Volume: $5B
Cumulative notional value of commercial paper issued and settled on the Canton Network reaches $5B.
Q1 2028
1
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 a natural part of its operations and long-term commitment to 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. We are 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. A formal legal memorandum on this analysis will be delivered to the Canton 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. 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 and $5B 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.
SV Mechanics
An extraBeneficiary PartyID associated with the ‘escrowed’ Super Validator will be setup by the Foundation, or another SV node operator approved to provide SV rewards escrow services, with an SV Weight at the maximum earnable weight.
The Applicant is responsible for coordinating the process of setting up the escrowed weights with the GSF and the operator of the SV node.
The Applicant is responsible for all costs associated with the operation of the representative SV
The representative SV will NOT mint rewards on a block by block basis
All representative SV rewards will go to the Unclaimed Rewards pool
Applicant is required to present proof of successful completed milestones to the Tokenomics Working Group
Applicant is required to present a calculation for number of Canton Coin it should earn for meeting the requirements of the milestone
If the Tokenomics Working Group agrees the milestone has been met and agrees with the calculation, an announcement will be sent via the Tokenomics-Announce mailing List
⅔ of Super Validator Operators will then assign a portion of the Unclaimed Rewards to be minted by the Applicant’s Validator
⅔ of the Super Validator Operators will update their configurations to allow Applicant to takeover a portion of their SV Weight on a go-forward basis
If any milestones and associated rewards are not achieved by the deadline
Applicant will be notified they have not met a deliverable by the Foundation
Remaining SV Weight on the representative SV will be removed from the SV Operator configs
The Tokenomics Working Group will make a recommendation to the SVs on what to do with the Unclaimed Rewards
Copyright
This CIP is licensed under CC0-1.0: Creative Commons CC0 1.0 Universal.
